Question 1. How long much one wait for an initial investment of $1,000 to equal $4,500 in value if the investment earns 12% compounded annually? (Round to the nearest year)
a) 4 years
b) 6 years
c) 9 years
d) 13 years
Question 2: Suppose we can invest $4,000 today and receive $6,200 in 4 years. What is the Net Present Value given a 10% expected return?
Question 3: You have just been informed that you stand to inherit $60,000 in 10 years. You can't wait that long, and would like to receive the money now. At an interest rate of 8%, how much would you receive?