1.How long would it take $6,000 to double if it were invested in a bank that pays 5% per year simple interest?

2.What is the present value of $500 due in 3 years if the appropriate interest rate is 8%, compounded semi-annually?

3. How long would it take $9,000 to double if it were invested in a bank that pays 10% per year?

4. Suppose you can buy a Treasury bond that makes no payments until the bond matures 10 years from now, at which time it will pay you $1,000. What interest rate would you earn if you bought this bond for $800?

5. How long would it take $5,000 to triple if it were invested in a bank that pays 6% per year?

6. What is the PVA of an ordinary annuity with 10 payments of $100 if the appropriate interest rate is 0%?

7. What is the present value of $500 due in 3 years if the appropriate interest rate is 8%, compounded daily?

8. Your rich uncle named you as the beneficiary of his life insurance policy. The insurance company gives you a choice of $120,000 today or a 12-year annuity of $12,000 at the end of each year. What rate of return is the insurance company offering?

9. How long would it take $6,000 to double if it were invested in a bank that pays 5% per year compounded continuously?

10. How long would it take $6,000 to double if it were invested in a bank that pays 5% per year?

11. How long would it take $10,000 to double if it were invested in a bank that pays 9% per year?

12. How long would it take $5,000 to double if it were invested in a bank that pays 6% per year?

13. Suppose you can buy a Treasury bond that makes no payments until the bond matures 20 years from now, at which time it will pay you $1,000. What interest rate would you earn if you bought this bond for $800?

14. What is the future value of $500 after 3 years if the appropriate interest rate is 8%, compounded daily?

15. If you had $120,000 that was invested at 6% and you wanted to withdraw $10,000 at the end of each year, how long would your funds last?

16. What is the PVA of an annuity due with 10 payments of $100 if the appropriate interest rate is 0%?

17. How long would it take $6,000 to triple if it were invested in a bank that pays 5% per year?

18. What is the future value of $500 after 3 years if the appropriate interest rate is 8%, compounded monthly?

19. Suppose you inherited $100,000 and invested it at 6% per year. How large of a withdrawal could you make at the end of each of the next 10 years and end up with a zero remaining balance?

20. If you had $120,000 that was invested at 6% and you wanted to withdraw $12,000 at the end of each year, how long would your funds last?