1) You are a trust fund baby, but you cannot touch your money until you are 28. You are now 20 and want to plan for your future based on the current value of your trust fund The guaranteed payout of your trust is $10,000. What is that money worth to you today. if you assume an annual inflation rate of 3% compounded annually? 2) You decide to set aside $120 a month for your future. Assuming a real interest rate of 7.5%, how much will you have after 25 years? How much more would you hyve if you invested for 30 years? 3) You decide to invest $27,000 in a municipal bond that earns 6.15% and is federally tax free. Your tax rate is 28%, how much have you effectively earned after ten years, assuming annual compounding? (Hint: must use two formulas to solve this question) In other words, because you are not paying taxes how much have you effectively earned? 4) You bought A&B Co stock 15 years ago for $12.00/share. Today it is worth $118.00 a share. You also bought CAD Mock 12 years ago at $26.00 share and now it is worth $72.00/share. Which stock had the highest average annual rate of retur? Bonus Which famous investor did we look to for stock market investing advice in the presentation