4.15 Chapter 4 HW - Problem Mastery answer as many as you can, please and thank you in advanced. 1) How long must one wait (to the nearest year) for an initial investment of $1,000 to triple in value if the investment earns 8% compounded annually? 2) What is the future value of $10,000 deposited today in a bank account that pays 8.8% interest rate after 5 years? 3) How much can be accumulated for retirement if $2000 is deposited annually, beginning one year from today, and the account earns 7% interest compounded annually for 39 years? 5) A perpetuity of $7,826 per year is said to offer a 6% interest rate. What is its present value? 6) What is the future value of $540 to be deposited today into an account paying 8.0% compounded semi-annually for two years? 7) You just won a lottery that promises to pay you $1 million exactly 10 years from today. Because the $1 million payment is guaranteed by the state in which you live, opportunities exist to sell the claim today for an immediate lump-sum cash payment. What is the least you will sell your claim for if you could earn 5.99 % on similar-risk investments during the 10-year period? 10) What is the future value of a five-year ordinary annuity of $1,000 per year if the interest rate is 7.12%? Hint: solve for year 5. 11) What is the present value of a perpetuity that offers to pay $100 next year and every year after the payment grows at 3.5%. Investments with similar risk are offering an 8% annual return. 12) Your bank is offering a certificate of deposit with an APR of 3.38% compounded monthly. What is the effective annual rate?