1. You have $2000 in a savings account today (T=0). Approximately how much longer would it take for your investment to quadruple (i.e. to become worth $8000, or double two times) if you earned 8.0% on your savings vs. 24.0% on your savings at the end of every calendar year? Hint: Think Rule of 72.
2. A firm's dividends have grown over the last several years. 5 years ago the firm paid a dividend of $1. Yesterday it paid a dividend of $5. What was the average annual growth rate of dividends for this firm?
3. What's the future value of a 7%, 5 year ordinary annuity that. pays $300 each year?