1. On your 1st birthday, you received a $10 savings account earning 6% annually. How much will you have in the account on your 30th birthday if you don't withdraw any money before then?

2. Your partner just promised to you that he/she will give you a graduation gift by paying half of of a new car when you receive an MBA degree in 2 years. Suppose that you also have $9,000 to invest today for your car and can earn 12% on the investment. If your partner match the amount of money you have in two years, what is the maximum you can spend on the new car?

3. Homer (the father) promises Bart (the son) that he will give him $8,000 upon his graduation from college at Springfield U. How much must Homer invest today to make good on his promise, if Bart is expected to graduate in 13 years and Homer can earn 6% on his money?

4. You are a rising superstar, and your boss offers you a contract-ending bonus of $10 million after 3 years of service. However, you would like to receive the money right now. If the prevailing interest rate is 5% per year, how much should you ask for now?