Answer the following questions using the Time Value of Money table: 1. If you deposited some of your savings today into an account that pays 13 percent interest. How long will it take for you to tribble (multiplying it 3 times) your money at a compound interest rate of 13% ? 2. Your parents are planning to retire after 10 years. They currently have $100000, and they would like to have $236700 when they retire. What annual rate of interest would they have to earn on their $100000 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 $200,000 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 14 percent, compounded annually: $1,000 in hand today or $2,000 due in 6 years or 5000$ due in 10 years? Explain your answer? 5. While you were a student in college, you borrowed $18,000 in student loans at an interest rate of 3 6. Your client is 40 years old and wants to begin saving for retirement. You advise the client to put $6,000 a year into the stock market. You estimate that the market's return will be, on average, 12 percent a year. Assume the investment will be made at the end of each year. A) If the client follows your advice, how much will she have by age 65?B ) if your client wants to have a pension salary (retirement salary) by age 65 and forever, how much the yearly salary is, assuming that the interest rate at that date =5% ? 7. Adams Company bought a piece of land in 1981 for $200,000. By 2005 , its value had increased to $1,582,200. Find the annual rate of appreciation during this period. 8. Your employer has promised to give you a $5,000 bonus after you have been working for him for 10 years. What is the present value of this bonus if the proper discount rate is 12% ? 9. A downtown bank is advertising that if you deposit $1,000 with them, and leave it there for 60 months, you can get $1801 back at the end of this period. Assuming quarterly base compounding, what is the annual rate of interest paid by the bank? 10. 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. 11. What is the effective interest rate for one dollar invested in the bank at a 9% nominal annual rate compounded on a daily basis ( use 365 days in a year )