1. Suppose your retirement goal is to accumulate $500 in 5.5 years. How much do you need to deposit in the bank today to meet your goal if the bank offers an interest rate 8.43%. 2. Bob deposits the amount of $105 in his bank account today, and plans to deposit the amount of $175 in the same account one year from today, and finally plans to deposit the amount of $200 in the same account two years from now. If the interest rate is 4.75%, how much will Bob have accumulated in his account three years from today? 3. What is the present value of 11 consecutive annual payments of $35 made at the end of each year beginning in one year if the interest rate is 3.00%? 4. Adam places the annuity amount of $60 in an account at the end of each year for 14 consecutive years beginning one year from today. If the interest rate is 7%, how much will Adam have at the end of the 14th year? 5. Suppose you place $50 in a bank account that earns 6% interest. How much would you have accumulated in the account after 2 years if the bank offers interest paid continuously? 6. How long does it take for a deposit of $60 to triple in value, that is to grow to the amount of $180 if invested at the interest rate of 8.00%? 7. A local bank has two saving options. One offers 6% interest compounded on a daily bases while the other offers 6.5% compounded quarterly. Which saving option would you choose? 6% compound daily 6.5% compound quarterly It doesn't matter 8. Congratulations. You have just won a sweepstakes prize. The prize allows you to choose the method of payment. Prize A: Receive $10000 today. Prize B: Receive $1000 today, followed by the amount of $1000 received at the end of each year for the next 15 years beginning one year from today. Which alternative you will choose at the interest rate stays at 8%? Prize A Prize B