1. Assume you put $12,000 into an account today at a bank and leave it there for 11 years. The bank promises that there will be $24,000 in the account at the end of the 11 years. What is the stated rate of interest (APR) on the account if interest is compounded monthly?
2. You take out a $25,000 30 years mortgage with monthly payments and a rate of 5%, monthly compounded. What is your monthly mortgage payment?
3. You take out a $25,000 30 years mortgage with monthly payments and a rate of 3.5%, monthly compounded. What is the loan balance by the end of year 15?
4. If the current inflation rate is 2.2% and you have an investment opportunity that pays 7%. What is the real rate of interest on your investment?
5. Calculate the future value at the end of year 4 of an investment fund earning 7% annual interest and funded with the following end-of-year deposits: $1,500 in at the end of year1, $2,000 at the end of year 2, and $2,500 at the end of year 3, $3,000 at the end of year 4.
6. A company just decided to save $5,500 a month for the next 6 years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pay 4.5% interest compounded monthly. The first deposit will be made today. What would todays deposit amount have to be if the firm opted for one lump sum deposit today that would yield the same amount of savings as the monthly deposits after 6 years?
7. Nike, Inc. has a fiscal year-end of May 31. On May 31, 2015, Nike. Inc. reported $21,597 million in assets and $12,707 million in equity. During fiscal 2016, Nikes assets decreased by $201 million while its equity decreased by $449 million. What were Nikes total liabilities on May 31, 2015 and May 31, 2016?
8. A scholarship endowment has a balance of $500,000. Five 1-year scholarships are to be awarded each year, with the first disbursements of $2,500 per scholarship coming on year from now. The endowment earns a 6% annual interest. If the scholarships are to be offered in perpetuity and the scholarship board wishes to raise the amount of the scholarships by a constant percentage amount each year, what amount of growth is feasible each year?
9. Calculate the tax liability of a corporation and a partnership earning operating income of $5,000,000, if the corporate tax rate is 21% and the owners; personal tax rate is 24%. Assume that all earnings are distributed to owners.

Refer to Tax Liability. Is there a tax advantage? How much?