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Answer each question using the time value of money table. (Show me the steps of solving, writing the answers only are not acceptable). 1. If you deposit money today into an account that pays 6 percent interest annually. How long will it take for you to double your money? (Use rounding answer). 2. Your parents are planning to retire after 18 years. They currently have $350000, and they would like to have $1183000, when they retire. What annual rate of interest would they have to earn on their $350000 in order to reach their goal, assuming they save no more money? 3. A- You are thinking about buying a car, and a local bank is willing to lend you $50000 to buy it. Under the terms of the loan, it will be fully amortized over 2 years (24 months), and the nominal rate of interest is 12 percent with interest paid monthly. What would be the monthly payment on the loan? B- What would be the effective rate of interest on the loan? 4. Which amount is worth more at 8 percent interest rate, compounded annually: $5000 in hand today or $6000 due after 5 years? Explain your answer? 5. While you were a student in college, you borrowed $21400 in student loans at an interest rate of 8 percent, compounded annually. If you repay $2500 per year, how long, to the nearest year, will it take you to repay the loan? 6. Your client is 40 years old and wants to begin saving for retirement. You advise the client to put $5,000 a year into the stock market. You estimate that the market's retum will be, on average, percent a year. Assume the * investment will be made at the end of each year. If the client follows your advice, how much will she have by age 652 7. Adams Company bought a piece of land in 1981 for $200,000. By 2005, its value had increased to $1,014,400. Find the annual rate of appreciation during this period. 8. A downtown bank is advertising that if you deposit $1,000 with them, and leave it there for 50 months, you can get $2691 back at the end of this period. Assuming monthly compounding, what is the annual rate of interest paid by the bank? 9. Cincinnati Company has decided to put $30,000 per quarter in a pension fund. The fund will earn interest at the rate of 8% per year, compounded quarterly. Find the amount available in this fund after 10 years. 10.Suppose you want to accumulate $9,365.60 for a down payment for a house. You will deposit $400 at the ending of every 2 months in an account that credits interest every 2 months at the rate of 18% per annum. How long will it take you to achieve your goal?