Problem 2

Determine the future value of the following cash flows:

$ 6,000 invested today for 4 years at 9%

$ 15,000 invested today for 6 years; interest of 12% compounded quarterly

Problem 3

If you invest $ 20,000 today and receive $ 28,050 at the end of 5 years, what annual rate of interest will you earn?

You invest $ 24,700 today earning 11% annually. How long will it take for you to accumulate $ 100,000?

You invest $ 11,470 today. You will receive $ 1,000 annually for 20 years. What is your rate of return?

You invest $ 8,851 today earning 8%. For how many periods can you receive payments of $ 1,000?