1. You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 8 percent interest. Approximately how long must you wait for your investment to double in value?
2. Lavender Investments will pay you $2,000 a year for 30 years in exchange for $28,000 today. What interest rate are you earning on this annuity?
3. Jacob needs to borrow $20,000 for 10 years. The loan will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for Jacob?