Use Appendix A for your reference. $($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

$1.$ Suppose you invest $$4,500$ in an account bearing interest at the rate of $14$ percent per year. What will be the future value of your investment in five years?

$2.$ Your best friend won the state lottery and has offered to give you $$12,000$ in four years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at $12$ percent annual interest. What is the present value of your friend$$s future gift?

$3.$ In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $$72,500$ when you are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of $6$ percent per year in order to accumulate the $$72,500$ purchase price?

$4.$ You have estimated that your educational expenses over the next four years will be $$15,000$ per year. How much money do you need in your account now in order to withdraw the required amount each year? Your account bears interest at $10$ percent per year.