1. For each of the following, compute the future value:

Present value	Years	Interest Rate	Future Value
$2,550	11	13%
$9,352	7	9%
$82,355	14	12%
$189,796	8	6%

2. In 1895, the first U.S. Open Golf Championship was held. The winners prize money was $190. In 2019, the winners check was $1,390,000.

a.	What was the percentage increase per year in the winners check over this period?
b.	If the winners prize increases at the same rate, what will it be in 2039?

3. Imprudential, Incorporated, has an unfunded pension liability of $570 million that must be paid in 20 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.3 percent, what is the present value of this liability?

4. Solve for the unknown interest rate in each of the following

Present Value	Years	Interest Rate	Future Value
140	3	%	160
260	17	%	625
29,000	18	%	107,503
28,261	20	%	193,610

5. Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003, Sothebys sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of $10,361,500. Unfortunately for the previous owner, he had purchased it in 2000 at a price of $12,477,500. What was his annual rate of return on this sculpture?