Dave, a recent retiree, receives his $600 pension at the end of each month. He will receive this

pension for 20 years. If Dave can invest his funds at an interest rate of 10 percent compounded

annually, he should be just as satisfied receiving this pension as receiving a lump sum payment

today of what amount?

2.You have instructed your employer to deduct $100 from your pay cheque at the end of every

month and automatically invest the money at an annual interest rate of 5 percent compounded

annually. You intend to use this money for your retirement in 20 years. How much will be in the

account at that time?

3.Roseanne works at a local shop for 30 hours per week. She makes $12 an hour, which is California's minimum wage as of 2019. Taxes (federal, state, and social security) deduct 28% of her gross pay. She then takes 10% of her take-home pay and puts it into a savings account. This leaves her with how much money to spend each week?

4.After a certain number of years, an investment of $6390 earning simple interest at 7.75% was worth $20 751.53.

How many years was the money invested?

5.Regular payments of $405 every 6 months for the next 12 years. The annuity earns 3.75%/a compounded semi-annually, and the first payment will be in 6 months.

Determine the current value of the investment.

6.Regular payments of $405 every 6 months for the next 12 years. The annuity earns 3.75%/a compounded semi-annually, and the first payment will be in 6 months.

Determine the current value of the investment.

7.If the S&P 500 is at a level of 2500 then the market value of a futures contract is 2,500 x $250 or $625000. So whats the point of buying a contract if as of December 12/18/2019 the total share value of the S&P 500 is $52434.7. It seems that the buyer of the contract would lose money if the other party would be obligated to deliver all of the shares once the contract expires?

8. Kenny wants to invest $250 every 3 months at 5.2%/a compounded quarterly. He would like to have at last $6500 at the end of his investment. How long will he need to make regular payments?

9.Find the accumulated value at the end of 10 years of 4 payments of 200 each payable half yearly in advance, if the interest rate is:

(a) 3% per annum effective.

(b) 5% per annum convertible monthly.

10.Find the accumulated value at the end of 10 years of 4 payments of 200 each payable half yearly in advance, if the interest rate is:

(a) 3% per annum effective.

(b) 5% per annum convertible monthly.