1) How long does it take for an investment to quadruple in value if the investment yields 5% per year? 2) What is the effective annual rate of interest for a loan that has an 8% annual percentage rate (APR), compounded monthly? 3) The average price of a hockey ticket at the end of 1979 was $30 and the average price of a hockey ticket at the end of 2000 was $75. At what annual rate did hockey prices grow? 4) If I invest $1000 today in an investment that earns 7% per year, compounded semi- annually, how much will I have in this account at the end of twenty years if I make no withdrawals? 5) Suppose that you trying to borrow money from your mother-in-law to finance your business. And suppose that you promise to repay her in three installments; the first payment in three years of $10,000, the second payment in five years for $15,000 and the final payment in seven years for $20,000. If your mother-in-law opportunity cost of funds is 10%, how much is she willing to lend you? 6) Your first child has just been born. You want to give her a million dollars when she retires at age 65. You decide to open a savings account where you would deposit an equal amount every three months. If you expect to earn 10% compounded quarterly, what would be the size of the quarterly deposit? 7) What is the future value of an annuity due for which $100 per month is deposited into an account paying 12% compounded monthly for 8.5 years? 8) You look at your budget and decide that you can afford $550 per month for a new car. What is the maximum loan you can afford if the interest rate is 8% compounded monthly and you want to repay the loan in four years? 9) John and Denise are partners in a law firm. They have decided to set aside a fund for their loyal secretary who will retire in 10 years. John wants to make a $100 monthly deposit into an account while Denise wants to make a lump-sum deposit today. How much will be in the account in 10 years if the interest rate is 10% compounded monthly and how much should Denise deposit in order to equal John's contribution?