Problem 1: You invest $150 in an investment fund today that pays 9 per cent interest. How long will it take to double your money?
Problem 2: You are able to deposit $850 into a bank term deposit today, and you will withdraw the money once the balance is $1000. If the bank pays 5 per cent interest, how long will it take you to attain your goal?
Problem 3: One of your customers is delinquent on their accounts payable balance. You have mutually agreed to a repayment schedule of $500 per month. You will charge 1% per month interest on the overdue balance. If the current balance is $13,000, how long will it take for the account to be paid off?
Problem 4: Laruen has just won the lottery and must choose one of the following guaranteed payoffs. Which one would you choose? The interest rate is 7% per annum.
a. $100,000 paid today
b. $150,000 paid six years from today.
c. $50,000 paid one year from today and $68,000 paid four years from today
d. $15,000 paid per year for ten years