(1) What is the present worth of an investment that will yield $20,000 in 5 years at 10 % interest?

(2) A 21-year old inherits $100,000 from a distant relative who has deceased. She decides to spend some and invest the rest immediately in order to retire at 65 with a $1,000,000 savings account. At 8% interest compounded annually, how much must be invested?

(3) Given: F = $5,000, N = 5 years, and i = 7% find A.

To Find F Table 1: Formulas for Cash Flow Patterns and Interest Factors Given Formula P F=P(1+i)" P. F P (1+i)n i(1+1) (1+i)n-1 A A=P P =P 1-(1+i)n P A P=A(1+i)n-1 i(1+i)n A F A=F (1+)n-1 F A F=A (1+1)*_1 A G n (1+1)n-1 F G A=A,+G6 F A *9*-2 + G (-*7*-1-n] P=A n P G (1+i)"1 + i(1+i)n #G} [4:40*72 ((1+1)-1 i(1+i)" (1+i)