1. Margaret Moore needs to decide whether to accept a bonus of $1,690 today or wait two years and receive $1,940 then. She can invest at 6 percent. What should she do?

Yes/No, she should/should not accept the bonus today

Find the present value of $4,000 under each of the following rates and periods: (Round your final answer to the nearest penny.) a. 8.9 percent compounded monthly for five years. Present value: $_________ b. 6.6 percent compounded quarterly for eight years. Present value: $_________ c. 4.3 percent compounded daily for four years. Present value: $_________ d. 5.7 percent compounded continuously for three years. Present value: $_________

3. Carol Garcia expects to need $63,000 for a down payment on a house in six years. How much would she have to invest today in an account paying 5.25 percent in order to have $63,000 in six years? Present value: $_________

4.Susan Wilson has $11,000 that she can deposit into a savings account for five years. Bank A compounds interest annually, Bank B twice a year, and Bank C quarterly. Each bank has a stated interest rate of 4 percent. What account balance would Susan have at the end of the fifth year if she left all the interest paid on the deposit in each bank? (Round answers to 2 decimal places, e.g. 52.75.) Future Value: Bank A: Bank B: Bank C:

5. Sunland Sales Company has sales of $2,250,000. If the companys management expects sales to grow 5.00 percent annually, how long will it be before sales double? Use financial calculator to solve this problem. (Round answer to 0 decimal places, e.g. 20.) Time needed to double its sales: ______________ years