1) Suppose you deposit $1,546.00 into and account 7.00 years from today into an account that earns 11.00%. How much will the account be worth 18.00 years from today?
2) Suppose you need to have $55,596.00 in an account 15.00 years from today and that the account pays 12.00%. How much do you have to deposit into the account 13.00 years from today?
3) Derek has the opportunity to buy a money machine today. The money machine will pay Derek $13,103.00 exactly 15.00 years from today. Assuming that Derek believes the appropriate discount rate is 5.00%, how much is he willing to pay for this money machine?