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Q's 1-10 please 1.) What is the value four years from now of a bank deposit of $2500 if interest is compounded annually at a

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1.) What is the value four years from now of a bank deposit of $2500 if interest is compounded annually at a rate of 1.75%. 2.) What if the interest rate rises to 3%. 3.) Suppose your grandmother invested $2000 for you when you were born. If the investment earns 5% per year what will it be worth on your 21st birthday? 4.) How much money would you have to put aside today in order to buy a new auto for $45,000 five years from now if interest rates are currently 2%. 5.) Suppose Third First Bank is offering a CD that will pay you $10,000 in 5 years if you deposit $7,835.26 today. What is the expected rate of return? Annuities: 6.) Who wants to be a millionaire? How much would you have to put away at the end of each year to have $1,000,000 assuming you retire in 40 years and can earn 5% on your money. 7.) What if you made your deposit at the beginning of the year? 8.) How much money do you need to have in the bank to pay for a 4 year college degree if tuition is $15,000 per year and your bank gives you 1.5% interest. 9.) What is the effective annual rate on a 18% APR loan if interest is compounded monthly? Stumper: 10.) How much do you need to save each month for 30 years in order to retire on 150,000 a year for 20 years assuming an interest rate of 5%

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