1. Suppose you deposit $2,500 today in a savings account at 3.5% interest compounded annually. Assuming no withdrawal, how much would you have at the end of 10 years?
2. Suppose you owe a creditor $10,000 due in a single payment in 5 years. How much should your creditor be willing to accept now if he can earn 8% on his money?
3. About how many years will it take for $100,000 placed in a bank account at 7% interest rate compounded annually to double?