1. You want to invest just enough today to have $1,000,000 in 25 years. Your bank will pay you6.2%a year. Assume there is no tax on interest. How much must you put into the bank today?

$222,273

$68,814

$37,100

$101,259

$474,709

1. A company is planning to invest in a project that requires initial capital investment of $7 million. The project is expected to generate the following cash flows:

Year 1: $1.8 million

Year 2: $2.2 million

Year 3: $1.9 million

Year 4: $2.0 million

What is the NPV of the project given a discount rate of 4.0%?

$900,000

$163,494

$(799,300)

$386,677

$899,857

1. Monica wants to buy a new car in 8 years and estimates that she will need $35,000 to purchase the vehicle of her choice. How much will she have to save annually given that she is in the 35% tax bracket and estimates to earn 6.0% in the market?

$4,194

$5,650

$5,000

$3,812

$7,500

1. Lauren graduated with $100,000 worth of student loans with an interest rate of 6.0%. How many years must the loan be if her annual payment budget is $12,000? (round to the nearest year)

19 Years

10 Years

8 Years

12 Years

14 Years

1. You invest $1,500,000 now at 6.5% annual interest in a Roth IRA (tax-free). Approximately how long will it take you to double your money?

11 Years

9 Years

6 Years

20 Years

14 Years