1.Pale is looking to invest for retirement, which she hopes will be in 8 years. She is looking to invest $62,500 today in a term deposit in the XYZ Bank that will generate interest at 4 percent annually. How much income will she have at the end of 8 years? (Round to the nearest dollar.)

2.Ana has asked Sarah to help her with choosing an investment. She has $75,000 to invest today for 5 years. Sarah identifies a fixed-term deposit that pays an interest rate of 8 per cent monthly. What will Ana receive from the investment in five years?

3. Jane is investing $65 000 in a bank term deposit that pays an 8 per cent semi-annual interest. How much will the term deposit be worth at the end of 5 years?

4. Puras is considering an investment that pays 6 per cent per annum. How much will she have to invest today so that the investment will be worth $65 000 in 5 years?

5. The KYS Ltd is raising $20 million by issuing 30-year bonds with a coupon rate of

6 per cent and a face value of $1000. Coupon payments will be monthly. Investors buying

the bond currently will earn a yield to maturity of 5 per cent. At what price will the

bonds sell in the marketplace? Explain.