Problem 1.1 You deposit $1,000 in a bank account earning 5.75% annual compound interest. How much will you have in 3 years?

Problem 1.2 You deposit $1,000 in a bank account earning 5.75% annual compound interest. How many years will it take to double your money?

Problem 1.3 Your bank account is earning 5.75% annual compound interest. How much money do you have to deposit now in order to have $1,000 in 5 years?

Problem 1.4 Bernie Madoff invites you to invest $1,000 in his fund now and be guaranteed at $1,500 in 4 years. What is the effective annual interest rate that Mr. Madoff is promising you?

Problem 1.5 Repeat Problem 1.1 but assume that interest is compounded quarterly at a nominal annual rate of 5.75%.

Problem 1.6 Repeat Problem 1.2 but assume that interest is compounded quarterly at a nominal annual rate of 5.75%.

Problem 1.7 Repeat Problem 1.3 but assume that interest is compounded monthly at a nominal annual rate of 5.75%.

Problem 1.8 You deposit $5,000 in an account earning 5% interest compounded semi-annually for 2 years and 7% interest compounded quarterly thereafter. What is the account value after 7 years?

Problem 1.9 What is the equivalent effective annual (compound) interest rate in Problem 1.8?

Problem 1.10 You deposit $5,000 in an account that earns 5% interest compounded annually in years 1 and 2, and thereafter a continuous rate (t) = 2/(t + 1) (t 0). What is the value of the account after 5 years?