Question 1: If you invest $5,000 in an investment that pays 3% interest annually for 20 years, how much will you have at the end of the 20 years? (In other words, what is the future value of $5,000 invested at a 3% rate for 20 years?)

Question 2: If you invest $7,000 in an investment that pays 4% interest annually for 5 years, how much will you have at the end of the 5 years? (In other words, what is the future value of $7,000 invested at a 4% rate for 5 years?)

Question 3: If you invest $200 in an investment that pays 6% interest annually for 20 years, how much will you have at the end of 20 years? (In other words, what is the future value of $200 invested at a 6% rate for 20 years?

Question 4: How much would you need to invest today in an investment that pays an annual 3% rate of return if you want to have $2,000 5 years from today? (in other words, what is the present value of $2,000 received 5 years from today?

Question 5: How much would you need to invest today in an investment that pays an annual 2% rate of return if you want to have $3,000 10 years from today? (in other words, what is the present value of $3,000 received 10 years from today?

Question 6: How much would you need to invest today in an investment that pays an annual 8% rate of return if you want to have $12,000 20 years from today? (in other words, what is the present value of $12,000 received 20 years from today?

Question 7: If you put $25 in a savings account each year that pays 1% interest, how much will you have in 10 years? (In other words, what is the future value of a $25 annuity at a rate of 1% for 10 periods?)

Question 8: If you put $50 in a savings account each year that pays 1% interest, how much will you have in 10 years? (In other words, what is the future value of a $50 annuity at a rate of 1% for 10 periods?)

5. Discussion Question: If, as an investor, you had a choice of daily, monthly, or quarterly compounding, which would you choose? Why?

Question 9: If you put $125 in a savings account that pays 6% (annual rate) compounded monthly, how much will you have at the end of the year? Compare that to $125 at a 6% (annual rate) compounded semi-annually?