Answer each of the following independent questions. Ignore personal income taxes.

Use Appendix A for your reference. $($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1.$ Suppose you invest $$4,400$ in an account bearing interest at the rate of $10$ percent per year. What will be the future value of your investment in five years?

$2.$ Your best friend won the state lottery and has offered to give you $$11,900$ in five years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at $8$ percent annual interest. What is the present value of your friend$$s future gift?

$3.$ In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $$71,500$ when you are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of $4$ percent per year in order to accumulate the $$71,500$ purchase price?

$4.$ You have estimated that your educational expenses over the next four years will be $$14,900$ per year. How much money do you need in your account now in order to withdraw the required amount each year? Your account bears interest at $6$ percent per year.