1. What is the annual interest rate, if $10,000 grows to $12,166 over 5 years? (3)

2. Payments of $500 each are received every six months ($1,000 per year) for 5 years. The nominal annual interest rate is 5%. Using semi-annual compounding, what is the present value today? What is the present value of the payments today? (3)

3. What monthly annuitiy investment (deposit per month) is required to achieve $20,000 in 4 years, if the nominal annual interest rate is 6%? (3)

4. What is the effective annual rate of 14.9 percent compounded monthly? (3)

5. You wish to save money to provide for retirement. Beginning one year from now, you will begin depositing a annual fixed amount into a retirement savings account that will earn 8% annually. You will make 30 such deposits. Then, one year after making the final deposit, you will withdraw $100,000 annually for 20 years (no more deposits). You wish to have $50,000 left in the account after the 20-year retirement period ends (note that this final cash flow has the same sign as the annual withdrawals).The fund will earn 6% annually during the 20-year retirement period. How much should you deposit annually over the 30-year savings period? (6)