1. Calculate the amount a person would need to deposit today with a 5 percent intrest rate to have $2000 in 3 years.
2.You are offered $5000 now or $8000 five years from now. If you could earn 8 percent intrest on the $5000, which is the better choice?
3.You want to have $3000 available to take a european trip after you graduate four years from now. How much(one lump sum) would you have to invest now if you could earn 7 percent intrest to ensure you have necessary $3000 at the end of four years?
4.Using the Rule of 72, calculate how quickly $1000 will double to $2000 at intrest rate of
a. 2 percent
b. 4 percent
c. 6 percent
d. 8 percent
e. 10 percent.