1. What will 30 000 USD invested for 5 years at 3 percent compounded annually grow to?
2. How many years will it take 24 000 USD to grow to 62 250 USD if it is invested at 10 percent compounded annually?
3. At what rate would 5 000 USD have to be invested to grow to 20 230 USD in 15 years?
4. Calculate the future sum of 10 000 USD, given that it will be held in the bank for 5 years and earn 10 percent compounded semiannually.
5. What is an annuity due? How does it differ from an ordinary annuity?
6. What is the present value of an ordinary annuity of 500 USD per year for 7 years discounted back to the present at 3 percent? What would be the present value if it were an annuity due?
7. What is the future value of an ordinary annuity of 500 USD per year for 7 years compounded at 3 percent? What would be the future value if it were an annuity due?
8. Consider you have just borrowed 35 000 USD, and you agree to pay it back over the next 10 years in 10 equal end-of-year payments plus 6 percent compound interest on the unpaid balance. What will be the size of these payments?
9. What is the present value of a 500 USD annuity for 5 years, with the first payment occurring at the end of year 5 (that is, five 500 USD payments occurring at the end of year 5 through year 9), given a discount rate of 10 percent?