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1. If Anna Maria saves $50 per month at 12 percent compounded monthly, how much will she have at the end of 20 years? 2.

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1. If Anna Maria saves $50 per month at 12 percent compounded monthly, how much will she have at the end of 20 years? 2. If Dominic Joseph wants to save $500,000 for retirement after 30 years, and he can earn 10 percent per annum, how much must he save each year? 3. If Matthew Wayne invests in a stock whose price increases from $78.35 per share to $100 per share over a five year period, what rate of interest did he earn? 4. What is the present value of a consul bond (a perpetuity) providing $5,000 per year and a rate of return of 12%? 5. Given the following cash flows, what is the present value if the applicable rate of interest is 8%? Year 0 1 2 3 4 Cash Flow 0 $400 $250 $900 $1,925

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