1. Fifth Third bank (real nameits in Cincinnati) is offering money market certificates that will return $25,000 to investors 5 years after their purchase. If these certificates sell for $21,250, what is the internal rate of return offered by these certificates?
2. Good old Grandpa gave Jake $10,000 toward his first years tuition at Fawlty University in Gumptown, Alabama. Jake wont start university for another seven years. If he invests the funds to earn 7% compounded quarterly, how much money will he have when he enrolls?
3. Emily has a goal to accumulate investments worth $1.6 million, but she doesnt care all that much for work. She recently received an inheritance of $250,000 from rich Uncle Scrooge. Assuming she invests this amount to earn a return of 9% compounded semiannually, how long will it take before she reaches her goal?