7. How much money do you need to deposit into an account annually, if you desire $2 million dollars in 40 years. Assume a 6% annual interest rate and annual compounding. Your first deposit will begin at the end of your first year.

8. You want to buy a new work truck for $42,000. You will make a down payment of $4,000. What are your MONTHLY loan payments for a 5 year term. Use 9% annual nominal interest for your loan.

9. What is the future value of a $1000/month deposit at the end of 5 years that grows at a rate of $50/month, starting with your second deposit (which is $1,050). Assume that your initial deposit occurs at the end of your first month. Use 9% nominal annual interest compounded monthly.

10. What is the value of your LAST PAYMENT of a $1000/month deposit at the end of 5 years that grows at a rate of $50/month, starting with your second deposit (which is $1,050). Assume that your initial deposit occurs at the end of your first month. Use 9% nominal annual interest compounded monthly.

11. Assume that you want to make annual deposits in order to save $3 million in 40 years, and you can achieve a 13% annual interest rate. Also assume that you can increase your annual deposit by 5% each year (first increase occurs in year 2). What is your initial deposit amount (end of first year)

12.

Your machine operator is becoming more productive, and generates additional profit each year. You expect to receive $25,000 in profit at the end of this year, but this will increase 6% a year for the next 15 years. If you have a 13% annual interest rate on your investments (compounded annually), what is the Present Value of the profits over the next 15 years?

13. What is the future value of an investment which compounds annually at 8% and starts at $1,000/year and grows by 10% per year for 20 years (starting with the second year)?

14.What is the Present Value of a $12,000 inflow 2 years from now, and a $40,000 inflow 6 years from now and a $30,000 outflow 4 years from now. Assume an interest rate of 6% for years 1 and 2, 8% for years 3 and 4 and 10% for years 5 and 6. Assume annual compounding.