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Calculate the future value of a lump sum investment

Problem 1. Calculate the future value of a lump sum investment that has the following characteristics: (a) 30 Years until Maturity, (b) $10,000 invested today, (c) Quarterly Compounding, and (d) A Interest Rate of 5%.

Problem 2. Calculate the present value of a lump sum investment that has the following characteristics: (a) 20 Years until Maturity, (b) A Future Value of $1,000,000, (c) Daily Compounding, and (d) A 10% Rate of Interest.

Problem 3. Calculate the number of years that it would take for you to amass $50,000, if you had $10,000 to invest today, in an investment vehicle offering 20% per year.

Problem 4. Calculate the interest rate that you would receive if you put $20,000 a way today and were able to take out $100,000 in 15 years.

Problem 5. What is the present value of an ordinary annuity that will pay you $2,456 for 5 years, given that you can obtain a 10% rate of return on your investment?

Problem 6. What is the present value of an annuity due that will pay you $33,155 for 10 years, given that the market rate of interest is 5%?

Problem 7. Calculate the monthly payment on a mortgage that costs $350,000. Assume that you put $20,000 down, your loan was a 30-year fixed loan, and your interest rate was 4.57%.

Problem 8. If you saved $155 per month for 25 years and were able to obtain a 6% rate of return on your investÃ¢?"how much money would you have saved up after 25 years?

Problem 9: Determine the maximum price that you would be willing to pay for a 'non-constant growth' stock with the following characteristics: (a) Year 1"Negative Growth Rate of 4%, (b) Years 2-5 Positive Growth Rate of 15%, (c) The Growth Rate Thereafter 7%, and (d) Investor's Require a 10% Rate of Return. $3.00 dividend that was just paid

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## Q : Stock market at an expected return

Every year for the next 30 years you plan to save 10 percent of your salary and invest it in the stock market at an expected return of 9 percent per year.