Part 4: Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $340,000 Rolls-Royce Phantom. Jack currently has $21,020 that he may invest. He has found a mutual fund with an expected annual return of 6.5 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation. You lend a friend $10,000, for which your friend will repay you $27,027 at the end of 5 years. What interest rate are you charging your "friend"? You are offered $80,000 today or $400,000 in 10 years. Assuming that you can earn 14 percent on your money, which should you choose? If you are offered $400,000 in 10 years and you can earn 14 percent on your money, what is the present value of $400,000?

Part 2: You lend a friend $10,000, for which your friend will repay you $27,027 at the end of 5 years. What interest rate are you charging your "friend"?

Part 3: You are offered $80,000 today or $400,000 in 10 years. Assuming that you can earn14 percent on your money, which should you choose? If you are offered $400,000 in 10 years and you can earn 14 percent on your money, what is the present value of $400,000?