Assume that you are nearing graduation of your MBA program and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions.

A customer of the bank, Raj Kami, wants to deposit $100,000 in a savings account that pays a nominal rate of 8%.

3. If Raj Kami deposited the $100,000 in 4 equal payments of $25,000 each at the end of years 1, 2, 3, and 4. How much would he have in the savings account at the end of year 4, based on 8% annual compounding?

4. Raj Kami wants to know how long it will take his sum of money to double if the growth rate per year is 8%