I. An individual contributes $150/month into a retirement account. The interest rate is 4% compounded monthly. What is the value after 18 years? Solve by hand as the tables do not Go that high 2. I deposit $1,200 each year into an account for 9 years. At 5% nominal interest compounded yearly, determine the future value and present value? 3. I have S$15,000 dollars that I need to grow into $19,500 in 7 years. What interest rate do I need to achieve this goal? A manufacturing plant purchases equipment for $140,000 which it intends to sell after 12 years for $18,000 salvage. The maintenance costs are estimated to be $2.000 the first year and increase by $500 each year thereafter. Using a nominal rate of 7%, find the present worth (i.e. present value) of the project. 4. I deposit $10,000 into a fund which will pay me a yearly annuity for 8 years at 6% interest. Calculate that annuity amount. 5. Your construction company bought an excavator for S350,000. After 7 years of use, it is scrapped for $70,000. Calculate the yearly depreciation by each of the three methods discussed in class. 6. .Straight line depreciation . Double Declining Method . Sum of Years