5) How much would $1,000,000 due in 100 years be worth today if the discount rate is 5%? If the discount rate is 20%? 6) How long would it take $1,000 to double if it were invested in a bank that paid 6% a year? How long would it take if the rate were 10%? 7) Assume that a company borrows $2,000 to be repaid in three equal installments at the end of the next three years. The bank charges 12% interest. How much is the amount of each payment? 8)You wish to determine the equal annual end of year deposits required to accumulate $5,000 at the end of five years. The interest rate is 10 percent. How much is the annual deposit? 9)The US Treasury offers to sell you a bond for $585.43. No payments will be made until the bond matures in 10 years at which time it will be redeemed for $1,000. What interest rate would you earn? 10 If you had $100,000 that was invested at 7% interest and you wanted to withdraw $10,000 at the end of each year, how long would your funds last? TVM Practice #1 +