1) Calculate the present value of $500 that is to be received 10 years from today, assuming an annual interest rate of 9%

2) Calculate the future value of $100 that you have today at t=0; you will deposit this $100 at 6% annual interest for four years.

3) Sally Smith has deposited $33,000 today into an account which will earn 10% interest annually. She plans to leave the funds in this account for seven years, earning interest. What will be the future value of this account at the conclusion of the seven-year time-frame?

4) Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If Bill can earn 12% on his contributions, how much money will he have in this IRA account at the conclusion of the 20 years?

5) Calculate the future value of an ordinary annuity of $1,000 received each year for 10 years, assuming a 3% annual interest rate.

6) A college received a contribution to its endowment fund of $2 million. The college can never touch the principal, but they can use the earnings. At an assumed annual interest rate of 9%, how much interest can the college earn each year from this $2 million investment to fund its operations?

7) Calculate the present value of an ordinary annuity of $2,350 received each year for eight years, assuming an annual interest rate of 10%.

8-9) The expected risk-free rate of return (RF) is 3%; the expected market return (rm) is 8%; and Tangshan's stock has a beta of 1.20.

a) Using the Security Market Line (SML) equation, what is the required rate of return (rs) on this stock?