Question 2:

a. You have just won the lottery and received $30,000. You deposited your winnings into an account that pays 8 percent interest compounded annually. How long will you have to wait until your winnings are worth $70,000?

b. In five years, you would like to receive $100,000. If you can earn 12 percent interest, how much do you need to invest today?

c. You have $1,000 and would like to triple your money in ten years. How much interest must you earn to achieve this goal?

d. If you deposit $3,000 at the end of each of the next 20 years in an account paying 9.5 percent interest, compounded annually, how much will you have in the account in 20 years? e. You are presented with an investment opportunity that will pay you $8,000 per year for the next twenty years. If you require a 12 percent return on your investment, how much is the investment worth?