1 - If you desire to withdraw the following amounts over the next five years from a savings account that earns 8% interest compounded annually, how much do you need to deposit now?

N amount

2 $32,000

3 $43,000

4 $46,000

5 $28,000

2- If $1500 is invested now, $1800 two years from now, and $2000 four years from now at an interest rate of 6% compounded annually, what will be the total amount in 15 years?

3- A local newspaper headline blared, "Shawn Smith Signed for S30 Million." A reading of the article revealed that on April 1, 2009, Shawn Smith, the former record- breaking centre from Hockey University, signed a $30 million package with the Edmonton lce Knights. The terms of the contract were $3 million immediately, $2.4 million per year for the first five years (with the first payment after one year), and S3 million per year for the next five years (with the first payment at year 6). If Shawn's interest rate is 8% per year, what would his contract be worth at the time he signs it?

4 - How much invested now at 6% would be just sufficient to provide three with the first payment in the amount of $7000 occurring two years hence, then $6000 five years hence, and finally $5000 seven years hence?