1. What is the amount you would have to deposit today to be able to take out $2070 a year for 2 years from an account earning 14 percent.

2. If you desire to have $38300 for a down payment for a house in 11 years, what amount would you need to deposit today? Assume that your money will earn 4 percent.

3. Pete Morton is planning to go to graduate school in a program of study that will take 3 years. Pete wants to have $18100 available each year for various school and living expenses. If he earns 6 percent on his money, how much must be deposit at the start of his studies to be able to withdraw $18100 a year for 3 years?

4.Carla Lopez deposits $11100 a year into her retirement account. If these funds have an average earning of 3 percent over the 14 years until her retirement, what will be the value of her retirement account?

5If a person spends $28 a week on coffee (52 weeks in a year), what would be the future value of that amount over 6 years if the funds were deposited in an account earning 6 percent?

6

A financial company that advertises on television will pay you $64,000 now for annual payments of $9,100 that you are expected to receive for a legal settlement over the next 8 years. Assume you estimate the time value of money at 11 percent.