1.For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Present Value				Years			Interest Rate				Future Value
	$	3,050			8			16	%			$
		8,653			21			8
		91,305			15			9
		229,382			31			4

2. For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Present Value		Years			Interest Rate				Future Value
$			11			5	%			$	17,828
			3			10					42,017
			15			13					795,382
			20			12					652,816

3. Solve for the unknown interest rate in each of the following: (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Present Value				Years			Interest Rate				Future Value
	$	775			6				%			$	1,501
		965			7								1,838
		21,000			18								147,832
		76,300			21								324,815

4. Solve for the unknown number of years in each of the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Present Value				Years			Interest Rate				Future Value
	$	400						12	%			$	1,255
		2,091						10					3,850
		33,105						15					388,620
		32,800						22					202,748

5. Assume the total cost of a college education will be $405,000 when your child enters college in 16 years. You presently have $67,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your childs college education? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual rate %

6. Youre trying to save to buy a new $200,000 Ferrari. You have $33,000 today that can be invested at your bank. The bank pays 4 percent annual interest on its accounts. How long will it be before you have enough to buy the car? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Length of time years

7. Imprudential, Inc., has an unfunded pension liability of $768 million that must be paid in 15 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 7 percent, what is the present value of this liability? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $

8. Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an auction house sold a statute at auction for a price of $10,500,500. Unfortunately for the previous owner, he had purchased it in 2008 at a price of $12,548,500. What was his annual rate of return on this sculpture? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Rate of return %

9. You have just made your first $5,000 contribution to your individual retirement account. Assume you earn an annual return 11.1 percent and make no additional contributions. What will your account be worth when you retire in 43 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Account value $ What if you wait 10 years before contributing? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Account value $

10. You need $85,000 in 10 years. If you can earn .52 percent per month, how much will you have to deposit today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Deposit today $