Solve various time value of money scenarios.

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1. Ben just hit the jackpot in Las Vegas and won $25,000! If he invests it now, at a 10% interest rate, how much will it be worth in 15 years?

2. Hunt would like to have $3,000,000 saved by the time he retires in 40 years. How much does he need to invest now at a 12% interest rate to fund his retirement goal?

3. Assume that Zoey accumulates savings of $1.5 million by the time she retires. If she invests this savings at 8%, how much money will she be able to withdraw at the end of each year for fifteenyears?

4. Cathy plans to invest $5,000 at the end of each year for the next eight years. Assuming a 14% interest rate, what will her investment be worth eight years from now?

5. Assuming a 10% interest rate, how much would Terri have to invest now to be able to withdraw $9,000 at the end of every year for the next nine years?

6. Chuckie is considering a capital investment that costs $530,000 and will provide the following net cash inflows:

Year	Net Cash Inflow
Year 1. . .	$304,000
Year 2. . .	$208,000
Year 3. . .	$100,000

Using a hurdle rate of 8%, find the NPV of the investment.

7. What is the IRR of the capital investment described in Question 6?