1. (Future value) Sales of a new finance book were 20,000 copies this year and were expected to increase by 23 percent per year. What are expected sales during each of the next 3 years? Graph this sales trend and explain.

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a. If the 20,000 copies of book sales this year were expected to increase by 23 percent per year, what are the expected sales of the new finance book next year?

enter your response here copies

2. (Future value) Giancarlo Stanton hit 44 home runs in 2017. If his home-run output grew at a rate of 12 percent per year, what would it have been over the following 5 years?

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a. Giancarlo Stanton hit 44 home runs in 2017. If his home-run output grew at a rate of 12 percent per year, what would it have been in 2018?

enter your response here hits

3. (Future value of an annuity) In 11 years, you are planning on retiring and buying a house in Oviedo, Florida. The house you are looking at currently costs $150,000 and is expected to increase in value each year at a rate of 6 percent. Assuming you can earn 8 percent annually on your investments, how much must you invest at the end of each of the next 11 years to be able to buy your dream home when you retire?

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a. If the house you are looking at currently costs $150,000 and is expected to increase in value each year at a rate of 6 percent, what will the value of the house be when you retire in 11 years?

$enter your response here

4. (Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are shown in the popup window: LOADING... . Assuming a discount rate of 21 percent, find the present value of each investment.

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a. What is the present value of investment A at 21 percent annual discount rate?

$enter your response here(Round to the nearest cent.)

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(Present value) The Kumar Corporation is planning on issuing bonds that pay no interest but can be converted into $3,000 at maturity, 19 years from their purchase. To price these bonds competitively with other bonds of equal risk, it is determined that they should yield 7 percent, compounded annually. At what price should the Kumar Corporation sell these bonds?

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Kumar Corporation should sell these bonds at $enter your response here. (Round to the nearest cent.)

6. (Perpetuities) What is the present value of the following?

a. A $800 perpetuity discounted back to the present at 8 percent

b. A $5,500 perpetuity discounted back to the present at 12 percent

c. A $170 perpetuity discounted back to the present at 9 percent

d. A $55 perpetuity discounted back to the present at 5 percent

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(Solving for r of an annuity) You lend a friend $20,000, which your friend will repay in 9 equal annual end-of-year payments of $3,000, with the first payment to be received 1 year from now. What rate of return does your loan receive?

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The rate of return your loan will receive is enter your response here%. (Round to two decimal places.)

8. (Solving for r in compound interest) You lend a friend $6,000, for which your friend will repay you $18,000 at the end of 14 years. What interest rate are you charging your friend?

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The interest rate you are charging your friend is enter your response here%. (Round to two decimal places.)

9. (Compound annuity) You plan on buying some property in Florida 9 years from today. To do this, you estimate that you will need $40,000 at that time for the purchase. You would like to accumulate these funds by making equal annual deposits in your savings account, which pays 11 percent annually. If you make your first deposit at the end of this year, and you would like your account to reach $40,000 when the final deposit is made, what will be the amount of your deposits?

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The amount of your end-of-year deposits will be $enter your response here. (Round to the nearest cent.)

10. (Complex present value) You would like to have $56,000 in 14 years. To accumulate this amount, you plan to deposit each year an equal sum in the bank, which will earn 6 percent interest compounded annually. Your first payment will be made at the end of the year.

a. How much must you deposit annually to accumulate this amount?

b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be? (Assume you can earn 6 percent on this deposit.)

c. At the end of 4 years you will receive $10,000 and deposit this in the bank toward your goal of $56,000 at the end of 14 years. In addition to this deposit, how much must you deposit in equal annual deposits to reach your goal? (Again assume you can earn 6 percent on this deposit.)

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(Present value) The state lottery's million-dollar payout provides for $3 million(s) to be paid over 19 years in 20 payments of $150,000. The first $150,000 payment is made immediately, and the 19 remaining $150,000 payments occur at the end of each of the next 19 years. If 9 percent is the appropriate discount rate, what is the present value of this stream of cash flows? If 18 percent is the appropriate discount rate, what is the present value of the cash flows?

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a. If 9 percent is the appropriate discount rate, what is the present value of this stream of cash flows?

$enter your response here(Round to the nearest cent.)

12. (Nonannual compounding using a calculator) Jesse Pinkman is thinking about trading cars. He estimates he will still have to borrow $33,000 to pay for his new car. How large will Jesse's monthly car loan payment be if he can get a 4-year (48 equal monthly payments) car loan from the university's credit union at an APR of 5.6 percent compounded monthly?

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Jesse's monthly car loan payment will be $enter your response here. (Round to the nearest cent.)

13. (Complex annuity) Upon graduating from college 30 years ago, Dr. Nick Riviera was already thinking of retirement. Since then, he has made deposits into his retirement fund on a weekly basis in the amount of $35. Nick has just completed his final payment and is at last ready to retire. His retirement fund has earned 8.9% interest compounded weekly.

a. How much has Nick accumulated in his retirement account?

b. In addition to all this, 20 years ago, Nick received an inheritance check for $20,000 from his beloved uncle. He decided to deposit the entire amount into his retirement fund. What is his current balance in the fund?