Deposit $5000 today m an account paying 12% per year. How much will you have in six years'' Suppose you need $20,000 in three years to pay tuition at MU. If you can earn 8 % on your money, how much do you need to set aside in savings today? Deposit $5000 today m an account paying r. It we will get $10,000 in 10 years, what rate of return are we being offered? Deposit $3000 today in an account paving 10% If you will need $8000 how long mil you have to wait? Rarely Prudent Inc has an unfunded pension liability of $225 million that must be paid in 17 years. If the relevant discount rate is $8.5%. what is the present value of this liability? You're trying to choose between two different investments, both of which have up-font costs of $25,000. Investment A returns $40,000 in six years. Investment B returns $60,000 in 11 years. Which of these investments has the higher rate of return