8% compounded annually to 3) You're trying to save to bu ny for six years? 2) How much would you have to invest today at 8% compounded annu eam 25,000 to buy a trailer house in 4 years? the lake. You e trying to save to buy a new $20.000 speedboat to take to the lake. 1.000 today that can be invested at Vour bank. The bank pays 15% annua est on its accounts. How long will it be before you have enough to speedboat? 4) Assume that the total cost of Assume that the total cost of college education will be 575.000 when your child enters college in 18 years. You presently have 57.000 to invest What rate of interest you must earn on your investment to cover the 575.000 cost of you childs college education? 5) You just won the lottery and want to put some money away for your child's college education College will cost a total $65.000in 18 years You can can 8% compounded annually. How much do you need to invest today? need to invest today Present 0) At the end of each year for the next ten years you will receive cash flows of after making an initial investment of 5321 today. What rate of return are you expecting from this investment? 19 7 If you deposit $1.000 at the end of the next 15 years into an account paying, 8% interest, how much money will you have in the account in 15 years? 8) An investment offers $2.500 per year for 8 years, with the first payment occurring one year from now. If the required return is 12%, what is the value of the investment? 9) If you put up $85,000 today in exchange for an 8%, 10-year annuity, what will be the annual cash flow? Det 10) At the end of each year for the next ten years you will receive cash inflows of $50. If the appropriate discount rate is 5% how much would you pay for the annuity? P o lo 11) Your plan is to raise $100,000 as quickly as possible. If you decide to invest $5,000 at the end of each of the next several years at 4% interest compounded annually, how long will it take you to reach your goal