1. How many years would it take $500 to double if you invested it in a bank that pays 4.25% per year?
2. You want to buy a new sports car 5 years from now, and you plan to save $5,800 per year, beginning immediately. You will make 5 deposits in an account that pays 4.75% interest. Under these assumptions, how much will you have 5 years from today?
3. What's the present value of a 4-year ordinary annuity of $3,595 per year plus an additional $1,500 at the end of Year 4 if the interest rate is 9%?
4. What's the future value of $2,500 after 10 years if the appropriate nominal interest rate is 8.75%, compounded quarterly?
5. An investment promises the following cash flow stream: $3,500 at Time 0; $2,750 at the end of Year 1 (or at t = 1); $3,450 at the end of Year 2; and $5,400 at the end of Year 3. At a discount rate of 6.0%, what is the present value of the cash flow stream?
6. Suppose you are buying your first house for $500,000, and are making a $100,000 down payment. You have arranged to finance the remaining amount with a 15-year, monthly payment, amortized mortgage at a 3.10% nominal interest rate. What will your equal monthly payments be?