1. You are planning on traveling to Ireland 5 years from now, and you can save $3,000 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 4.5% per year. Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?
$17,776
$16,412
$18,355
$15,803
2. You plan to invest in bonds that pay 3.78%, compounded annually. If you invest $10,000 today, how many years will it take for your investment to grow to $40,000?
34
38
41
42
3. How much would you be willing to pay for an account today that will have a value of $1,000 in 10 years under continuous compounding if the nominal rate is 5.2%?
$564.12
$523.88
$497.39
$594.52