1. What is the future value of $10,000 deposited today in a bank account that pays 7.1% interest rate after 5 years? (Enter the answer in dollar format to two decimal places without the $ sign -> 1009.32 and not $1,009.32 )

2. How much can be accumulated for retirement if $2000 is deposited annually, beginning one year from today, and the account earns 7% interest compounded annually for 48 years?

3. A perpetuity of $9,403 per year is said to offer a 6% interest rate. What is its present value?

4. You just won a lottery that promises to pay you $1 million exactly 10 years from today. Because the $1 million payment is guaranteed by the state in which you live, opportunities exist to sell the claim today for an immediate lump-sum cash payment. What is the least you will sell your claim for if you could earn 7.55 % on similar-risk investments during the 10-year period?

5. What is the future value of a five-year ordinary annuity of $1,000 per year if the interest rate is 8.02%? Hint: solve for year 5.

6. What is the present value of a perpetuity that offers to pay $100 next year and every year after the payment grows at 4.1%. Investments with similar risk are offering an 8% annual return.

7. Your bank is offering a certificate of deposit with an APR of 5.99% compounded monthly. What is the effective annual rate?

8. What is the loan balance (in dollars) after the third payment, of a 5 year loan of $100,000 with an APR of 10% and annual payments?