$2.$ You just won the lottery and want to put some money away for your child's first year of college education. Freshman year in college will cost $$40,000$ in $18$ years. You can earn $4\%$ compounded annually. How much do you need to invest today?$3.$ Tom Brown will receive $$10,000$ a year for the next $15$ years from his trust. If a $6$ percent interest rate is applied, what is the future value of these payments?$4.$ You have just won $$1$ million in a lottery. The amount is to be paid out at the rate of $$50,000$ a year for the next $20$ years. With a discount rate of $5$ percent, what is the i$?5.$ How much would you have to invest today at $8\%$ compounded annually to have $$25,000$ available for the purchase of a car four years from now?$6.$ You want to put some money away every year to save for the down payment on a house in five years. The down payment amount will be $$50,000.$ You can earn $8\%$ compounded annually. How much do you need to invest yearly?$7.$ What is the present value of $$15,000,$ to be received in $10$ years, if the interest rate is $12\%?8.$ You deposited $$1,000$ in an account that pays $8\%,$ interest, planning to use it as a deposit on a condo. Seven years later you close out your account. How much money will you receive?$9.$ What is the future value of a $5-$year ordinary annuity with annual payments of $$200,$ evaluated at a $15$ percent interest rate?$10.$ Bryan Tanaka will receive $$12,000$ a year for the next $15$ years as a result of his patent. If a $9$ percent rate is applied, should he be willing to sell out his future rights now for $$100,000?11.$ Your grandfather placed $$2,000$ in a trust fund for you. In $10$ years the fund will be worth $$5,000.$ What is the rate of return on the trust fund?$12.$ Granny puts $$35,000$ into a bank account earning $4\%.$ You can't withdraw the money until the balance has doubled. How long will you have to leave the money in the account?$13.$ Many economists view a $3\%$ annual inflation rate as acceptable. Assuming a $3\%$ annual increase in the price of automobiles, how much will a new Suburban cost you $5$ years from now, if today's price is $$38,000?14.$ You have $$500$ in an account which pays $5\%$ compound interest. How much additional dollars of interest would you earn over $4$ years if you moved the money to an account earning $6\%?15.$ An account was opened with an investment of $$1,00010$ years ago. The ending balance in the account is $$1,500.$ If interest was compounded annually, what rate was earned on the account?$16.$ You need to borrow $$18,000$ to buy a truck. The current loan rate is $12\%$ compounded monthly and you want to pay the loan off in equal monthly payments over $5$ years. What is the size of your monthly payment?$17.$ The monthly mortgage payment on your house is $$3,000.$ It is a $30$ year mortgage at $6\%$ compounded monthly. How much did you borrow?$18.$ You and your spouse have found your dream house in Kailua. The selling price is $$700,000$; you will obtain a $30-$year fixed$-$rate mortgage at $5\%$ APR. Assume that monthly payments begin in one month. What will each payment be$?19.$ Kimberly Ford invested $$10,00010$ years ago at $16$ percent, compounded quarterly. How much has she accumulated?$20.$ Sara Shouppe has invested $$100,000$ in an account at her local bank. The bank will pay her a constant amount each year for $6$ years, starting one year from today, and the account's balance will be $0$ at the end of the sixth year. If the bank has promised Ms$.$ Shouppe a $10\%$ return, how much will they have to pay him each year?