1)Ian invests $10,000 today in a 3 year CD paying 2.00% annually.He receives the full amount of principal and accrued interest in 3 years.How much will he receive in 3 years? monkey2

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2)How much would Sylvia have to invest in a CD today to receive $15,000 in 5 years time if the interest rate payable on the CD is 3.00% APR?

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3) A zero coupon bond is sold at a discount and pays no interest during its life. John, who is planning for retirement, invests $75,000 in this zero coupon bond which promises to pay $100,000 in 20 years time.What is the rate of return on the investment? Assume annual TVM compounding.

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4)Upon retirement, Chris invests $200,000 in a 10-year ordinary annuity when the prevailing interest rate is 4.0% APR.How much will he receive annually?

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