9-Youre trying to save to buy a new $275,000 Ferrari. You have $50,000 today that can be invested at your bank. The bank pays 4.8 percent annual interest on its accounts. How long will it be before you have enough to buy the car?

17-Suppose you are still committed to owning a $275,000 Ferrari (see Problem 9). If you believe your mutual fund can achieve an annual rate of return of 11.2 percent and you want to buy the car in 9 years (on the day you turn 30), how much must you invest today?

18-You have just made your first $5,500 contribution to your retirement account. Assuming you earn a return of 10 percent per year and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? (Does this suggest an investment strategy?)

5-If you put up $45,000 today in exchange for a 6.4 percent, 15-year annuity, what will the annual cash flow be?

6-Your company will generate $55,000 in annual revenue each year for the next seven years from a new information database. If the appropriate discount rate is 8.2 percent, what is the present value of the savings?

7-If you deposit $4,900 at the end of each of the next 20 years into an account paying 10.3 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years?

8-You want to have $75,000 in your savings account 12 years from now, and youre prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.4 percent interest, what amount must you deposit each year?

10- The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $30,000 per year forever. If the required return on this investment is 5.6 percent, how much will you pay for the policy?

28-Discounted Cash Flow Analysis [LO1] If the appropriate discount rate for the following cash flows is 9.32 percent per year, what is the present value of the cash flows?

Year	Cash Flow
1	$2,480
2	0
3	3,920
4	2,170