You want to sell your three$-$year old car privately to an

individual, and have placed an ad in the classified section of the

newspaper. You are asking $$15,000,$ but a potential customer

has offered you $$22,000($guaranteed by a bank$),$ payable to you

four years from now. If you believe a fair interest rate on a

personal loan is $7\%,$ determine which is more advantageous to

you, $$15,000$ today or the present value of $$22,000$ guaranteed

four years from now?

You invest $$10,000.$ During the first year the investment

earned $20\%$ for the year. During the second year, you earned

only $4\%$ for that year. How much is your original deposit

worth at the end of the two years?

Find the future value of $$100,000$ invested for $15$ years. The

current five$-$year interest rate is $6\%.$ Rates for the second and

third five$-$year periods are expected to be $6\mathrm{.}5\%$ and $7\mathrm{.}5\%,$

respectively.