1. You can deposit $15,000 in an account that pays 9% annual interest, either today or exactly 12 years from now. In which of the two cases will you be better off after 45 years?

2. Martina needs to have $13,000 at the end of 5 years to buy a motorboat. She can invest $7,000 today and not touch the money for 5 years until she grows to $13,000. Determine the rate of return that the investment vehicle of her choice must have in order to achieve her goal of $13,000 in 5 years.

3. Determine what amount invested today at 10% compounded annually will be worth $5,000 at the end of 5 years.

4. What is the price of a bond with a coupon rate of 7%, a maturity date of 15 years, a par value of $1,000, and a market rate of 10%?

5. Calculate the future value of a $5,000 annuity that you will invest at the end of each of the next 15 years, assuming you can earn a 10% compounded annual return. Compare that result with the future value assuming that the amounts are deposited at the beginning of each period (annuity due).