1. How much money must you deposit in the bank today to make five end-of-year annual withdrawals of $500? The bank pays 7% interest on your account.
2. How much would you be willing to pay for an investment which paid you $100 at the end of each year for seven years? Assume you can earn 12% a year on other types of investments.
3. How much is $100 worth two years from now with quarterly compounding at a stated 12% rate.
4. You deposit $50 in the bank today and three years later you have $61.25 in the bank. What annual rate of interest did the bank pay you over the three-year period?