Question 1: If you deposit $12,000 in a bank account that pays 6.2% interest annually, how much would be in your account after 5 years? Show all work.
Question 2: What is the present value of a security that will pay $10,000 in 20 years if securities of equal risk pay 9.6% annually? Show all work.
Question 3: Your parents will retire in 18 years. They currently have $260,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Show all work.
Question 4: If you deposit money today in an account that pays 9.1% annual interest, how long will it take to double your money? Show all work.