1. What are sensitivity analysis, scenario analysis, break-even analysis, and simulation? Why are these analyses important, and how should they be used?
2. At 4.7 percent interest, how long does it take to double your money? To quadruple it?
3. Suppose you are still committed to owning a $150,000 Ferrari. If you believe your mutual fund can achieve a 10.6 percent annual rate of return, and you want to buy the car in 10 years on the day you turn 30, how much must you invest today?