1) If you invest $115 at an interest rate of 12%, how much will you have at the end of seven years? 2) In 1973, Gordon Moore, one of Intel's founders, predicted that the number of transistors that could be placed on a single silicon chip would double every 18 months, equivalent to an annual growth rate of 59%. The first microprocessor chip was built in 1971 and had 2,140 transistors. In 2019, the chip contained 32 million transistors. What has been the annual compound rate of growth in processing power? 3) Compute the future value of a $100 investment for the following combinations of rates and times. a. r= 6.3%, t = 10 years. b. r= 6.3%, t= 20 years. c. r = 4.3%, t= 10 years. d. r= 4.3%, t = 20 years. 4) If the present value of $159 is $145, a. what is the discount factor b. If that $159 is received in year 5, what is the interest rate? 5) If the cost of capital is 6%, what is the PV of $270 paid in year 6? 6) Siegfried Basset is 65 years of age and has a life expectancy of 12 more years. He wishes to invest $24,000 in an annuity that will make a level payment at the end of each year until his death. If the interest rate is 10.0%, what income can Mr. Basset expect to receive each year? 7) The annually compounded discount rate is 11.5%. You are asked to calculate the present value of a 12-year annuity with payments of $51,400 per year.

1) If you invest $115at an interest mate of 12%, how much will you have at the end of seven years? 2) In 1973, Gordon Moore, one of Intel's founders, predicted that the number of transistors that could be placed on a single silicon chip would double every 18 months, equivalcnt to an annual growth rate of 59%. The first microprocessor chip was built in 1971 and had 2,140 transistors. In 2019, the chip contained 32 million transistors. What has been the annual compound rate of growth in processing power? 3) Compate the future value of a $100 investment for the following combinations of retes and times. a. r=6,3%,t=10 years. b. r=6.3%,t=20 years c. r=4.3%,t=10 years. d. r=4.3%,t=20 years 4) If the present value of $159 is $145, a. what is the discount factor b. If that $159 is received in year 5 , what is the interest mate? 5) If the cost of capital is 6%, what is the PV of $270 paid in year 6 ? 6) Siegfried Basset is 65 years of age and has a life expectancy of 12 more years. He wishes to invest $24,000 in an annuity that will make a level payment at the end of each year until his death. If the interest rate is 10.0%, what income can Mr. Basset expect to receive each year? 7) The anmually compounded discount rate is 11.5%. You are asked to calculate the present value of a 12-year annuify with payments of $51,400 per year