You have just received notification that you have won the $$1$ million first prize in the Centennial Lottery. However, the prize will be awarded on your $100$th birthday $($assuming you're around to collect$),80$ years from now. What is the present value of your windfall if the appropriate discount rate is $10$ percent?

Your coin collection contains fifty $1952$ silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in $2057,$ assuming they appreciate at a $4\mathrm{.}5$ percent annual rate?

You're trying to save to buy a new $$170,000$ Ferrari. You have $$40,000$ today that can be invested at your bank. The bank pays $5\mathrm{.}3$ percent annual interest on its accounts. How long will it be before you have enough to buy the car?

Assume the total cost of a college education will be $$290,000$ when your child enters college in $18$ years. You presently have $$55,000$ to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education?

What is the future value of $$2,100$ in $17$ years assuming an interest rate of $8\mathrm{.}4$ percent compounded semiannually?

In January $1907,$ the average house price in the United States was $$314,600.$ In January $1900,$ the average price was $$200,300.$ What was the annual increase in selling price?

Green delta, Inc. has an unfunded pension liability of $$850$ million that must be paid in $25$ years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is $6\mathrm{.}5$ percent, what is the present value of this liability?

The Maybe Pay Life Insurance Co$.$ is trying to sell you an investment policy that will pay you and your heirs $$25,000$ per year forever. If the required return on this investment is $7\mathrm{.}2$ percent, how much will you pay for the policy?

The going rate on student loans is quoted as $10$ percent per annum. The terms of the loans call for monthly payments. What is the effective annual rate $($EAR$)$ on such a student loan?

Would you be willing to pay $$12,099$ today in exchange for $$50,000$ in $15$ years? What would be the key considerations in answering yes or no$?$ Would your answer depend on who is making the promise to repay?