Problem
1. If the annual interest rate is 3 percent, how long would you have to wait before a $24,000 investment at least doubles in value? Assuming annual compounding, compute the minimum number of years required.
2. Jack is celebrating his 24th birthday today. He wants to start saving in one year's time, and retire after his 70th birthday. He decides to deposit the same amount of money on his birthday each year in a bank which offers 3% interest per year, compounded annually. Jack hopes to be able to accumulate SGD 700,000 for his saving account, after he made his scheduled deposit on 70th birthday). Determine the amount he must deposit annually.
3. You can invest SGD 100,000 in fixed deposit with a bank. The term of the deposit is 6 years, and the deposit rate quoted is 3.6%. Calculate the amount you will have in 6 years, upon maturity of this fixed deposit, if the 3.6% is an APR but compounded quarterly.
4. You own a company. This company's projected revenue is $30,000 for year 1, $31,000 for year 2, and $32,000 for year 3. From the 4th year onwards, revenue is expected to be 5% higher than the previous year. Assume the appropriate nominal discount rate is 8%, and all revenue is collected at the end of each year. Determine the present value of your sales revenue for the first 15 years, round to 2 decimal places.