Show your work. #6-10

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%