5.1 Future value: Chuck Tomkovick is planning to invest $25,000 today in a mutual fund that will provide a return of 8 percent each year. What will be the value of the investment in 10 years?

5.2 Future value: Ted Rogers is investing $7,500 in a bank CD that pays a 6 percent annual interest. How much will the CD be worth at the end of five years?

5.3 Future value: Your aunt is planning to invest in a bank CD that will pay 7.5 percent interest semiannually. If she has $5,000 to invest, how much will she have at the end of four years?

5.4 Future value: Kate Eden received a graduation present of $2,000 that she is planning on investing in a mutual fund that earns 8.5 percent each year. How much money will she have in three years?

5.5 Future value: Your bank pays 5 percent annual interest compounded semiannually on your savings account. You don't expect to add to the current balance of $2,700 over the next four years. How much money can you expect to have at the end of this period?

5.6 Future value: Your birthday is next week and instead of other presents, your parents promised to give you $1,000 in cash. Since you have a part-time job and, thus, don't need the cash immediately, you decide to invest the money in a bank CD that pays 5.2 percent, compounded quarterly, for the next two years. How much money can you expect to earn in this period of time?

5.7 Multiple compounding periods: Find the future value of a five-year $100,000 investment that pays 8.75 percent and that has the following compounding periods:

Quarterly. Monthly. Daily. Continuous. 5.8 Growth rates: Joe Mauer, a catcher for the Minnesota Twins, is expected to hit 15 home runs in 2014. If his home-run-hitting ability is expected to grow by 12 percent every year for the following five years, how many home runs is he expected to hit in 2019?

5.9 Present value: Roy Gross is considering an investment that pays 7.6 percent, compounded annually. How much will he have to invest today so that the investment will be worth $25,000 in six years?

5.10 Present value: Maria Addai has been offered a future payment of $750 two years from now. If she can earn 6.5 percent, compounded annually, on her investment, what should she pay for this investment today?