1. To what amount will the following investments accumulate? $5,000 invested for 10 years at 10 percent compounded annually b. $8,000 invested for 7 years at 8 percent compounded annually C. $775 invested for 12 years at 12 percent compounded annually d. $21,000 invested for 5 years at 5 percent compounded annually 2. Liza Mayors recently sold her Porsche, placed $10,000 in savings account paying annual compound interest of 6 percent. a Calculate the amount of money that will accumulate if Liza leaves the money in the bank for 1,5, and 15 years. b. What if Liza moves her money into an account that pays 8 percent or one that pays 10 percent. Rework part (a) using 8 percent and 10 percent c. What conclusions can you draw about relationship between interest rates, time, and future sums from the calculations you just did? 3. You just received a $5,000 bonus. a. Calculate the future value of $5,000, given that it will be held in the bank for five years and earn an annual rate of 6 percent. b. Recalculate part (a) using a compounding period that is (1) semiannual and (2) bimonthly 4. How many years will the following take? (Solving for n) a. $500 to grow to $1,039.50 if it's invested at 5 percent compounded annually b. $35 to grow to $53.87 if it's invested at 9 percent compounded annually 5. What is the present value of the following amounts? a $800 to be received 10 years from now discounted back to the present at 10 percent b. $300 to be received 5 years from now discounted back to the present at 5 percent c. $1,000 to be received 8 years from now discounted back to the present at 3 percent d. $1,000 to be received 8 years from now discounted back to the present at 20 percent 6. If you were offered $1,079.50 ten years from now in return for an investment of $500 currently, what annual rate of interest would you earn if you took the offer? 7. You have a choice of borrowing money from a finance company at 24 percent compounded monthly or borrowing money from a bank at 26 percent compounded annually. Which alternative is the most attractive