Hi Katrina,

Please answer the below questions. I need them by 11pm EST. Thank you so much for your help. These are the last questions I need help with.

1.

First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually.

If you made a $70,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 9 years?

2.

Solve for the unknown number of years in each of the following(Do not round intermediate calculations and round your finalanswers to 2 decimal places. (e.g., 32.16)):

Present Value

Years

Interest Rate

Future Value

$

540

9

%

$

1,317

790

10

1,743

18,200

17

277,707

21,300

15

414,506

3.

Imprudential, Inc. has an unfunded pension liability of $585 million that must be paid in 20 years. To assess the value of the firms stock, financial analysts want to discount this liability back to the present.

If the relevant discount rate is 7.8 percent, what is the present value of this liability?

4.

You have just received notification that you have won the $3 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday (assuming youre around to collect), 66 years from now.

What is the present value of your windfall if the appropriate discount rate is 10 percent?

5.

Rust Bucket Motor Credit Corporation (RBMCC), a subsidiary of Rust Bucket Motor, offered some securities for sale to the public on March 28, 2008. Under the terms of the deal, RBMCC promised to repay the owner of one of these securities $100,000 on March 28, 2039, but investors would receive nothing until then. Investors paid RBMCC $24,599 for each of these securities; so they gave up $24,599 on March 28, 2008, for the promise of a $100,000 payment 31 years later.

a.	Based on the $24,599 price, what rate was RBMCC paying to borrow money?(Do not round intermediate calculations and round your finalanswer to 2 decimal places. (e.g., 32.16))

Rate of return

%

b.

Suppose that, on March 28, 2018, this securitys price is $42,880. If an investor had purchased it for $24,599 at the offering and sold it on this day, what annual rate of return would she have earned?(Do not round intermediate calculations and round your finalanswer to 2 decimal places. (e.g., 32.16))

Annualrate of return

%

c.	If an investor had purchased the security at market on March 28, 2018, and held it until it matured, what annual rate of return would she have earned?(Do not round intermediate calculations and round your finalanswer to 2 decimal places. (e.g., 32.16))

Annualrate of return

%