9.You hope to buy your dream car 5 years from now. Today, that car costs $68,000 but you expect the price to increase by an average of 4% per year over the next five years. How much will your dream car cost by the time you are ready to buy it?

10. Your grandmother invested a lump sum for you 25 years ago earning 6.5% interest per year over that time. Today, she gave you the proceeds of that investment which is now worth $86,900. How much did she originally invest?

11. Asendia USA has an unfunded pension liability of $6 million that must be paid in 20 years. The relevant annual discount rate is 6.5%. What is the present value of this liability?

12. You would like to give your 3-year old daughter $60,000 towards her college education 15 years from now. How much money must you set aside today for this purpose if you can think you can earn 7% per year on your investments?