1. Steve inherited $750,000. What annual rate of return must Steve earn to make it worth $2 million at the end of the 10th year?

2. If Steve invests it at 15% annual return, how long should he have to wait to make it worth $2 million?

3. Sofia bought a rental house for $650,000. She rented it for 5 years at $3,100/month. At the end of the 5th year, she sold it for $750,000. What was her average annual rate of return on this investment? [Assume no other cash flow

4. Sephora is considering to buy a project that returns her $100,000/year for the first 4years, and $125,000/year for the next 4years. She invests only if she can earn at least a 12% annualized return on this 8year project. What is the maximum price she should pay to own this project?

5. Sue made a fixed deposit of $25,000. The bank credits her account with interest every month at an annualized rate of 8.40%. She will neither deposit nor withdraw any funds from this account for the next 5 years. What will be the value of her deposit at maturity?