Solve various time value of money scenarios.

1. Harold just hit the jackpot in Las Vegas and won $55,000! If he invests it now, at a 10% interest rate, how much will it be worth in 20 years? 2. Bob would like to have $2,000,000 saved by the time he retires in 30 years. How much does he need to invest now at a 14% interest rate to fund his retirement goal? 3.Assume that Penny accumulates savings of $1 .5 million by the time she retires. If she invests this savings at 12%, how much money will she be able to withdraw at the end of each year for twenty years? 4. Jessica plans to invest $6,500 at the end of each year for the next eight years. Assuming a 10% interest rate, what will her investment be worth eight years from now? 5. Assuming a 6% interest rate, how much would Danielle have to invest now to be able to withdraw $14,000 at the end of every year for the next nine years? 6. Sammy is considen'ng a capital investment that costs $520,000 and will provide the following net cash inows: Year Net Cash Inow Year1. . . . $304,000 Year2. . . . $208,000 Year 3. . . . $93,000 Using a hurdle rate of 10%, nd the NPV ofthe investment. 7. What is the IRR of the capital investment described in Question 6