1. Suppose you are offered an investment that will allow you to double your money in 6 years. You have $10,000 to invest. What is the implied rate of interest? 2. Suppose you have a 1-year old son and you want to provide $75,000 in 17 years towards his college education. You currently have $5000 to invest. What interest rate must you earn to have the $75,000 when you need it? 3. Your goal is to have $20,000 for a down payment on a house. If you can invest at 10% per year and you currently have $15,000, how long will it be before you have enough money for the down payment? 4. A mutual fund promises you 10% return for every quarter. If you want to invest your money in this mutual fund, how long will you double your money? 5. You are saving for graduation trip by saving a fixed amount of money each month. Your goal is to have $5000 when you graduate after three years. Suppose the current interest rate is 3%, how much do you need to save each month? 6. You are helping your parents to plan for their retirement. They now have defined contribution plan from their employer which allows them to deposit a fixed amount of money into their retirement fund. Your parents hope to end up with $1,000,000 when they retire after 20 years Suppose the retirement fund earns a stale return of 6% cach year. How much should your parents put into the retirement fund each year in order to realize their goal