1- Albert Pujols hit 47 home runs in 2009.If his home -run output grew at a rate of 12 percent per year ,what would it have been over the following 5 years?
2- The state lottery's million-dollar payout provides for $1 million to be paid over 19 years in 20 payments of $50000.The first $50000 payment is made immediately,and the 19 remaining $50000 payments occur at the end of each of the next 19 years .If 10 percent is the appropriate discount rate ,what is the present value of this stream of cash flows? If 20 percent is the appropriate discount rate ,what is the present value of the cash flows?
3- Bowflex's television ads say you can get a fitness machine that sells for $999 for $33 a month for 36 months. What rate of interest are you paying on this Bowflex loan?