1. Jay plans to invest $4,500 per year for each of the next 15 years (assume that payments are made at the end of each year) into a conservative equity fund. If his return is 6%, how much will he have at the end of the 15-year period.
2. Your grandmother has told you that she will give you $49,000 ten years from now. Assuming a discount rate of 7.5%, what is the present value of this gift?
3. Assuming a 6% interest rate and quarterly compounding, how much will a $5,000 investment be worth in nine years?