Problem6: Finding Interest rate, Number of Periods, and Payments (Annuity): Assume that it is now January 1, 2001.

1. Assume you can deposit $500 now at the bank account. If you will need $1,000 on January 1, 2005, how much interest rate must you earn at your bank account?

2. Assume you can deposit $500 now at the bank account, which will yield 9.05% annually. How long does it take to double your money in your bank account?

3. If you will need $1,000 on January 1, 2005 and want to make equal payments on each January 1 from 2002 through 2005, how large must each of the 4 payments be? Assume interest rate is 10%.

4. If you will need $1,000 on January 1, 2005 and want to make equal payments on each January 1 from 2001 through 2004, how large must each of the 4 payments be? Assume interest rate is 10%.