1. What is the future value of $2,000 invested at 3% compounded annually for 8 years? Answer to the nearest cent (###.00) - rounding to two decimal places.

2. You receive graduation gifts totaling $5,000 and decide to invest this money for a house downpayment. The rate of return you hope to receive is 5%.

If you do earn 5% compounded annually, how much will you have for a downpayment twenty years from now?

Please answer with two decimal places, rounding your answer to the nearest cent. (#,###.00)

3. The company treasurer has placed $2 Million excess company funds into a bank account. This account earns 2% interest compounded yearly. The treasurer asks you to compute how much this account will grow at the end of the fifth year. (What is the Future Value?) Please round your answer up or down to the nearest dollar. Do not include decimal places.

4.

A particular investment generates the following cash flows:

$3 Million at the end of one year from now;

$3 Million at the end of year two;

$3 Million at the end of year three;

$7 Million at the end of year four; and

$10 Million at the end of year five.

What is the future value of this investment five years from now if the investor earns 9% per year compounded annually on all funds invested?

Answer to the nearest dollar. Do not include decimal place