1. Sarah Wiggum would like to make a single lump-sum investment and have $2.32 million at the time of her retirement in 28 years. She has found a mutual fund that expects to earn 6 percent annually. How much must Sarah invest today? If Sarah earned an annual return of 17 percent, how much must she invest today?

2. You lend a friend $17,000 for which your friend will repay you $36 at the end of 11 years. What interest rate are you charging your friend?

3. Lisa Simpson wants to have $11million in 45 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 8.75 percent annually. What mustLisa's annual deposit be?

4. What is the accumulated sum of each of the following streams of payments?

a.$500 a year for 10 years compounded annually at 11 percent.

b. $108 a year for 7 years compounded annually at 7percent.

c. $36 a year for 12 years compounded annually at 11 percent.

d. $27 a year for 4 years compounded annually at 55 percent.