1. What is the future value of $500 three years from today if the interest rate is 6 percent?

2. Three years ago Warren put $1,200 in an account paying 2 percent interest. How much is the account worth today?

3. Four years ago Matt deposited some money into an account. He earned 5 percent on this account and now has a balance of about $303.88. How much did he deposit into his account when he opened it?

4. Consider a one-year discount bond that has a present value of $3,000. If the rate of discount is 5 percent, what is the future value of the bond (the amount the bond pays in one year)?

5. Consider a perpetuity making one payment each year that has a present value of $1,000. If the rate of discount is 7 percent, what is the annual payment of the bond?

6. Consider a three-year fixed-payment security that has a present value of $1000. If the rate of discount is 7 percent, what is the payment made at the end of each year?

7. Consider a two-year coupon bond that has a present value of $10,000. If the rate of discount is 3 percent, and the payment made at the end of each year is $250, what is the principal amount to be repaid at the end of two years?