1. Misty needs $13,000 in 8 years to fulfill her goal and purchase a small sail boat. She is willing to invest a lump sum of $9,400 today and leave the money untouched for 8 years. What sort of investment return does she have to get annually to achieve her goal?

2. What is the present value of the following mix stream cash flow? The firms opportunity cost is 11%.

CF 1 $11,000

CF2 -CF5 $5,200 per year

CF6 $7,100

3. You are planning to buy a house in New Jersey. You put a 20% down payment, and 15-year mortgage rates are at 4.2% -Price of the house is $400,000. Calculate the monthly payments. Calculate the 1st month interest payment. Calculate the 1st month principal payments

4. Determine the present value of the mixed stream of cash flows using a 6% discount rate.

CF2 $800

CF3 $1200

CF4 $1600

CF5 $1900