1) How many years would it take= $50 to double if you invested it in the bank which pays 6.25% per year? You wish to purchase the new sports car four years from now, and you plan to put aside $4,600 per year, beginning immediately. You will make four deposits in the account which pays 4.50% interest. Under these suppositions, how much will you have four years from today?
2) What’s the current value of a 5-year ordinary annuity of= $3,275 per year plus the extra $3,000 at the end of Year 5 if interest rate is 7%?
3) What’s the future value of= $2,500 after eight years if suitable interest rate is= 8.0%, compounded semi-annually?
4) The investment promises given cash flow stream: $1,500 at Time 0; $2,750 at the end of Year 1 (or at t = 1); $3,150 at the end of Year 2; and $5,600 at the end of Year 3. At the discount rate of= 9.0%, determine the current value of cash flow stream?