1. How much money must you put into an account at the beginning of each of the 20 years to have $10,000 at the end of the 20th year? Assume the account pays 12% per year and round to the nearest $1.

2. Car Loans R They loan you $24,000 over four years to buy a car. The loan must be repaid in 48 equal monthly installments. The annual interest rate on the loan is 9 percent. What is the monthly payment?

3.  If you invest $10,000 in an investment that yields 14 percent compounded monthly, what will you have after 12 years (round to the nearest $10)?

4. You are considering investing in a project with the following possible outcomes:

Probability of investment States Occurrence Returns
State 1: Economic boom 18% 20%
State 2: Economic growth 42% 16%
State 3: Economic decline 30% 3%
State 4 : Depression 10%-25%
Find the expected rate of return and the standard deviation of the returns for this investment, respectively.

5. Suppose an investment is forecast to produce the following returns: a 20% probability of a return of $1,200; a 50% chance of a return of $5,600; and a 30% chance of a return of $9,500. What is the expected amount of return this investment will produce?

6. He discovers an antique in his attic that he bought at auction 10 years ago for $400. You auction it off on EBay and receive $8,000 for your item. What annual rate of return did he earn?