Question 1. If Anna Maria saves $50 per month at 12 percent compounded monthly, how much will she have at the end of 20 years?
Question 2. If Dominic Joseph wants to save $500,000 for retirement after 30 years, and he can earn 10 percent per annum, how much must he save each year?
Question 3. If Matthew Wayne invests in a stock whose price increases from $78.35 per share to $100 per share over a five year period, what rate of interest did he earn?
Question 4. What is the present value of a consul bond (a perpetuity) providing $5,000 per year and a rate of return of 12%?
Question 5. Given the following cash flows, what is the present value if the applicable rate of interest is 8%?
Year 0 1 2 3 4
Cash Flow 0 $400 $250 $900 $1,925