1. If Paul deposits $8,000 in a bank account that pays 7% interest annually, how much money will be in his account after 10 years? 2. Kevin deposited $1,000 in three payments of $333.33 each on January 1, of 2013, 2014, and 2015. How much will Kevin have in his account on January 1,2015 , based on 8% annual compounding? 3. What is the present value of a security that will pay $10,000 in 30 years? If securities of equal risk pay 6%. 4. If you deposit money today into an account that pays 6.5% interest, how long will it take you to double your money? 5. Your parents are planning to retire in 20 years. They currently have $500,000 and they would like to have $5,000,000 when they retire. What annual rate of interest would they have to earn on their $500,000 in order to reach their goal, assuming they save no more money? 6. What is the future value of a 10-year ordinary annuity that promises to pay you $500 each year? The rate of interest is 6%. 7. What is the future value of a 10 -yr annuity due that promises to pay you $500 each year? Assume that all payments are reinvested at 6% per year. 8. An investment pays you 12% interest, compounded quarterly. What is the periodic rate of interest? What is the nominal rate of interest? What is the effective rate of interest? 9. Tom Kringle Inc invests $4 million to clear a tract of land and to set out some young pine trees. The trees will mature in 10 years, at which time Tom Kringle plans to sell the forest at an expected price of $8 million. What is Tom Kringle's expected rate of return? 10. What is the present value of a perpetuity of $200 per year if the appropriate discount rate is 8% ? If interest rates in general were to double and the appropriate discount rate rose to 16%, what would happen to the present value of the perpetuity