# You won a contest at a local business that has paid you a single $5,000. At 22, you have decided to invest these funds for 45 years until you retire. During this time your account will earn 13%, compounded annually, every year. As soon as you retire (exactly 45 years from today) you will start withdrawing retirement funds every year for an additional 33 years, but you are investing more conservatively at 8% compounded annually. How much can you withdraw each year in retirement? # You are considering investing in a zero-coupon bond that sells for $500. At maturity in 8 years, it will be redeemed for $1,000. During the life of the bond NO interest coupons will be paid. Using the Rule of 72, what approximate annual rate of growth does this represent? # You expect to deposit the following cash flows at the end of years 1 through 5, $1,000; $4,000; $9,000; $5,000; and $2,000 respectively. Alternatively, you could deposit a single amount today at the beginning of year 1 (end of year 0). How large does the single deposit need to be today if you can earn 10% compounded annually? Hint: the present value today (0) is identical to the single cash flow amount #Suppose you want to have $0.5 million saved by the time you reach age 30 and suppose that you are 20 years old today. If you can earn 5% on your funds, how much would you have to invest today to reach your goal? Do not round intermediary calculations. Use full precision of your calculator or excel. Round final answer to 2 decimal places. Please put your answer in the format XXXXXX.XX (no S.no commas, 2 decimal places). # What is the balance in an account at the end of 10 years if $2,500 is deposited today and the account earns 4% interest, compounded annually? Please put your answer in the format XXXXXX.XX (no commas, 2 decimal places). . If you deposit $10 in an account that pays 5% interest, compounded annually, how much will you have at the end of 10 years? Please put your answer in the format XXXXXX.XX (no $,no commas, 2 decimal places). If you deposit $10 in an account that pays 5% interest, compounded annually, how much will you have at the end of 50 years? Please put your answer in the format xxxXXX.XX (no S, no commas, 2 decimal places). If you deposit $10 in an account that pays 5% interest, compounded annually, how much will you have at the end of 100 years? Please put your answer in the format XXXXXX.XX (no S.no commas, 2 decimal places). What is the balance in an account at the end of 10 years if $2,500 is deposited today and the account earns 4% interest, compounded quarterly? Please put your answer in the format XXXXXX.XX (no commas, 2 decimal places). How much will be in an account at the end of five years the amount deposited today is $10,000 and interest is 8% per year, compounded semi-annually? Please put your answer in the format XXXX%.8% (no S, no commas, 2 decimal places). How much interest on interest is earned in an account by the end of 5 years if $100,000 is deposited and interest is 4% per year, compounded continuously? Please put your answer in the format XXXX (no S, no commas, 2 decimal places). Suppose you deposit $100,006 in an account today that pays 6% interest, compounded annually. How long does it take before the balance in your account is $500,000? How long does it take for your money to grow to ten times its original value if the interest rate of 5% per year? How much would I have to deposit in an account today that pays 12%o interest. compounded quarterly, so that I have a balance of $20,000 in the account at the end of o Styles How much would I have to deposit in an account today that pays 12% interest, compounded quarterly, so that I have a balance of $20,000 in the account at the end of 10 years? Do not round intermediary calculations. Use full precision of your calculator or excel. Round final answer to 2 decimal places. Please put your answer in the format XXXXXX.XX (no $ no commas, 2 decimal places). Solve for the present value, PV, given: Future value: $10,000 Interest rate:5% Number of periods:5 Do not round intermediary calculations. Use the full precision of your calculator or excel. Round final answer to 2 decimal places. Please put your answer in the format XXXXXX.XX (no S, no commas, 2 decimal places). Solve for the resent valun DY 1 Paragraph Styles Solve for the present value, PV, given: Future value: $5,000 Interest rate:5.5% Number of periods:3 Do not round intermediary calculations. Use the full precision of your calculator or excel. Round final answer to 2 decimal places. Please put your answer in the format xxxxxxxxx (no S no commas, 2 decimal places). Suppose I want to be able to withdraw $5,000 at the end of five years and withdraw $6,000 at the end of six years, leaving a zero balance in the account after the last withdrawal. If I can earn 5% on my balances, how much must I deposit today to satisfy my withdrawals needs? Given: Hint -- There are two different future values. Treat as two separate present values, then combine. Do not round intermediary calculations. Use full precision of your calculator or excel. Round final answer to 2 decimal places. Please put your answer in the format XXXXXX.XX (no S.no commas, 2 decimal places). o TI