Question 1. Kirk Van Houten, who has been married for 24 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the ring will cost $13,000 in 6 years. Kirk currently has $4,441 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?

Question 2 . Jack asks Jill to marry him, and she accepts under one condition: Jack must buy her a new $300,000 Rolls-Royce Phantom. Jack currently has $43,240 that he may invest. He has found a mutual fund with an expected annual return of 5 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation.

Question 3. You lend a friend $10,000, for which your friend will repay you $27,027 at the end of 5 years. What interest rate are you charging your "friend"?

Question 4. f you are offered $360,000 in 12 years and you can earn 12 percent on your money, what is the present value of $360,000?