$1.$ What is the future value of $$3,118$ invested for $10$ years at $6\mathrm{.}4$ percent compounded

annually?

$2.$ What is the present value of $$12,950$ to be received $3$ years from today if the

discount rate is $5$ percent?

$3.$ Three years ago, you invested $$2,450.$ Today, it is worth $$3,250.$ What rate of

interest did you earn?

$4.$ You purchased a bond at a price of $$3,300.$ In $30$ years when the bond matures,

the bond will be worth $$20,000.$ It is exactly $23$ years after you purchased the

bond and you can sell the bond today for $$13,800.$ If you hold the bond until it

matures, what annual rate of return will you earn from today?

$5.$ Bob bought some land costing $$16,340.$ Today, that same land is valued at

$$46,717.$ How long has Bob owned this land if the price of land has been

increasing at $4$ percent per year?

$6.$ Marko, Incorporated, is considering the purchase of ABC Company. Marko

believes that ABC Company can generate cash flows of $$5,200,$ $$10,200,$ and

$$16,400$ over the next three years, respectively. After that time, they feel the

business will be worthless. Marko has determined that a rate of return of $14$

percent is applicable to this potential purchase. What is Marko willing to pay

today to buy ABC Company? $($Hint $$ the firm value is the present value of those

cash flows $$ this problem likely needs a small table to complete$).$

$7.$ We Pay Insurance Company will pay you $$1,250$ each quarter for $30$ years. You

want to earn a minimum interest rate of $\mathrm{.}91$ percent per quarter. What is the most

you are willing to pay today for these payments?

$8.$ Doby wants to buy a car that costs $$26,000.$ The interest rate on his loan is $5\mathrm{.}27$

percent compounded monthly and the loan is for $7$ years. What are his monthly

payments?

$9.$ Your credit card company charges you $1\mathrm{.}44$ percent per month. What is the APR

on your credit card?

$10.$ Your credit card company charges you $1\mathrm{.}31$ percent per month. What is the EAR

on your credit card?