Question: 1. We sometimes need to find out how long it will take a sum of money (or anything else) to grow to some specified amount.

1. We sometimes need to find out how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales are growing at a rate of 12% per year, how long will it take sales to double? Do not use the approximation to find the answer.

2. If you want an investment to double in 5 years, what interest rate must it earn?

3. What is the difference between an ordinary annuity and an annuity due? What type of annuity is shown below? How would you change it to the other type of annuity?

4. What is the future value of a 3-year ordinary annuity of $300 if the appropriate interest rate is 10%?

5. What would the future value be in problem 7 if the annuity were an annuity due?

6. What is the present value of the following uneven cash flow stream? The appropriate interest rate is 8%, compounded annually.

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