Please use a calculator or any method you prefer for the following problems: (All answers for questions 5 to 13 must be recorded on these sheets. Please show work if possible.)

9. Julie currently has on hand $30,000 that will be deposited in a savings account until it accumulates to $50,000. How long will it take Julie to accumulate the $50,000, assuming 4% compounding on an annual basis? ____________________

10. What would you pay for a $200,000 bond that matures in 10 years and pays 8% interest (stated or coupon rate) a year if you wanted to earn a yield of 7% (market rate)? Please use a yield of 6% if your name has eight letters in it. ________________

11. Brianne plans to deposit $100,000 today into a fund that will be needed at the end of 7 years. She will receive 12% interest on the fund balance. What is the fund balance at the end of year 7 assuming semiannually compounding? __________________

12. What is the present value of $10,000 to be received each year for 20 years if the payments start immediately. Assume a discount rate of 4%. __________________

13. Robert wants to withdraw $100,000 a year for 30 years after he retires. He will probably work for 30 years and earn 4 interest during the whole time. How much does Robert have to contribute to her pension fund each year so she can retire on $100,000 a year? ________________