DEBUSSY CORPORATION TIME VALUE OF MONEY PROBLEMS (1) (2) Debussy Corporation wants to accumulate $5,000 in three years as a down payment on a building. If the company can earn 6% on its investments, how much will they need to invest today in order to accomplish this? Debussy Corporation is considering an investment in a mutual fund that has shown an average return of 12% per year over the last ten years. The company expects that the fund will continue to average this return though nothing is guaranteed) in the future. If the company invests $10,000 today in this mutual fund, how much can it expect to have in ten years, assuming monthly compounding? Debussy Corporation is paying $100 at the end of each month into an insurance annuity contract that pays 7% per year, compounded monthly, for its CEO. If it continues to pay this amount into the annuity for 25 years, how much will the annuity be worth at the end of that time? (3) (4) Debussy Corporation would like to purchase a new Lexus today which has a sticker price of $40,000. The company intends to finance the purchase over six years, making monthly payments at the end of each month. If the company borrows the money to purchase the car at a 6% annual rate of interest, how much will the monthly payment be on the loan? Debussy Corporation has won a $1,000,000 settlement in a lawsuit. If the company takes half of the settlement today and invests it at 10% for 10 years, how much will the company have at the end of the ten years, assuming quarterly compounding