1. You deposit $2000 today at 6% interest. How much will you have in 5 years?
2. You invest $5,000 today. You will earn 8% interest. How much will you have in 4 years?
3. You have $450,000 to invest. If you think you can earn 7%, how much could you accumulate in 10 years?
4. If a commodity costs $500 now and inflation is expected to go up at the rate of 10% per year, how much will the commodity cost in 5 years?
5. How much would you have to deposit now to have $15,000 in 8 years if interest is 7%?
6. If you want to have $10,000 in 3 years and you can earn 8%, how much would you have to deposit today?
7. If you think you can sell an asset for $25,000 in five years and you think the appropriate discount rate is 5%, how much would you be willing to pay for the asset today?
8. What is the Present Value for $15,000 in 30 years at the discount rate of 12%? (15 points)
9. XYZ mutual fund has an average 6% annual rate of return. How much money could you make in 20 years if you invest 80,000 at it? (15 points)
10. John is 38 years old right now. He needs $1,000,000 at the age of 65 to retire. If his 401K account can generate an average annual rate of return of 7%, how much money does he need to put in right now? (20 points)