1) The Everlasting Life Insurance Co is trying to sell you the investment policy which will pay you and your heirs $10,185 per year forever. Assume the Everlasting Life Insurance Co. told you policy costs $157,889. At what interest rate would this be a fair deal?
2) How many years it will take to raise your money from $3,573 to $6,334 if you can make the interest of 6% compounded monthly?
3) Let us suppose, you deposit $3,710 in the bank for 19 years. Compute the amount you will have in bank at the end of 19 years if interest of 7 % compounded monthly for first 6 years and interest of 7 % compounded quarterly for enduring years?