1. Suppose a State of North Carolina bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 5%, how much is the bond worth today?
2. Ellen now has $125. How much would she have after 8 years if she leaves it invested at 9% with annual compounding?
3. What is the present value of the following cash flow stream at a rate of 5.0%?
   1. years : 0-----------1-----------2-----------3
   2. CFs: $750-----$2,450-----$3,175-----$4,400
4. What is the future value to #3 the question above
5. After receiving a reward for information leading to the arrest of a notorious criminal, you are considering investing it in an annuity that pays $15,000 at the end of each year for 10 years. You could earn 1.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
6. After receiving a reward for information leading to the arrest of a notorious criminal, you are considering investing it in an annuity that pays $3,500 at the end of every 6 months for 10 years. You could earn 1.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
7. A new investment opportunity for you is an annuity that pays $750 at the beginning of each year for 3 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
8. Your father is considering purchasing an annuity that pays $1,000 at the beginning of each month for 15 years. He could earn 2.5% on his money in other investments with equal risk. What is the most he should pay for the annuity?
9. You are hoping to buy a new boat 5 years from now, and you plan to save $7,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have 5 years from now?
10. You want to open a sushi bar 10 years from now, and you plan to save $5,000 semiannually, beginning six-month from today. You will make deposits in an account that pays 3.2% interest. Under these assumptions, how much will you have 10 years from today?
11. You want to buy new kitchen appliances 3 years from now, and you plan to save $5,000 annually, beginning immediately. You will deposit your savings in an account that pays 7.2% interest. How much will you have 3 years from now?
12. You want to buy new kitchen appliances 3 years from now, and you plan to save $3,000 semiannually, beginning immediately. You will deposit your savings in an account that pays 7.2% interest. How much will you have 3 years from now?
13. You plan to retire in 40 years with $1,000,000 in your saving account. If you expect to earn a 3% nominal interest from your account, how much do you need to deposit annually to have $1,000,000 at your retirement?
14. Suppose United Bank offers to lend you $10,000 for one year at a nominal annual rate of 8.00%, but you must make interest payments at the end of each month and then pay off the $10,000 principal amount at the end of the year. What is the effective annual rate on the loan?
15. You are considering investing in a European bank account that pays a nominal annual rate of 8%, compounded monthly. If you invest $5,000 at the beginning of each month, how many months would it take for your account to grow to $150,000? Round fractional months up.
16. You plan to borrow $350,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with equal end-of-month payments for 15 years (180 months). What would your equal monthly payments be?
17. Your older brother turned 30 today, and he is planning to save $20,000 per year for retirement, with the first deposit to be made one year from today. He will invest in a mutual fund that's expected to provide a return of 5.5% per year. He plans to retire 35 years from today when he turns 65, and he expects to live for 25 years after retirement, to age 90. Under these assumptions, how much can he spend each year after he retires? His first withdrawal will be made at the end of his first retirement year.