1) What will an investment of $5,000 today be worth in 7 years if I can earn 5.5% interest

annually? Monthly? Quarterly?

2) If I invest a $1,000 per month for 10 years at 3.0%, how much will I have at the end of 10

years?

3) I need to replace a sidewalk in 5 years. How much must I put aside each month if I can

earn 4.0% interest and the sidewalk will cost $6,500?

4) I learned I will receive from my grandparents - $10,000 in eight years. They said I can

have the money today if I accept a 15% discount. What is it worth today?

5) I own a retail strip center. I want to sell one of my leases to cover a major repair. The lease

has 10 years remaining on the lease term. The monthly rent is $7,500 per month net. How

much will I receive today at a 12.0% discount rate?

6) I applied for a mortgage in the amount of $1,250,000. The lender has quoted me an

interest rate of 5.5% for 20 years with monthly payments. What will my monthly payments

be?

7) I just replaced a roof top HVAC unit that cost $20,000. The economic life of the component

is 10 years. Inflation annually is currently 2.5%. I have an investment account that earns

6.0%. How much must I put aside each month in the investment account to cover the

future replacement cost of the HVAC unit?

8) I can invest $100,000 for five years and six months and earn at 8.0%. What is it worth at

the end of the term?

9) I have a mortgage with a remaining balance of $150,000 with monthly payments of

$1,074.65. The original interest rate was 6.0%. How many rears are remaining for the

loan?

10) I will receive a series of quarterly payments of $3,000 and a lump sum at the end of 8

years of $25,000. I originally invested $50,000. What is my rate of return?