1. Susan put $1000 in a bank account today. Calculate how much she will have at the end of 20 years if the bank pays an annual compound interest rate of 3%. (Do not use the $ sign in your answer. For instance, if you answer is $100 just enter 100).

2. Suppose you placed money in an investment account five years ago and you now have twice that amount in the account. What interest rate did you earn over this time period that doubled your investment in 5 years?

3. An insurance policy promises you $2,000 per year forever. What is the present value of this policy if the discount rate is 5%?

4. How many years will it take your $4,000 investment to grow to $16,000 if you are earning a 6% rate of return?

5. You would like to buy a car in 5 years. In order for you to do this, you figure you will need to have saved up at least $15,000 at that point. Next year you will start making annual payments into an account promising a 7% annual rate of return. How much will your annual payments have to be to reach your goal amount?

6. Say you deposit $100 into an account today. The bank promises you 6% interest compounded monthly. How much will you have in your account after 10 years?