7) You have just made your first $2,000 contribution to your individual retirement account Assuming you earn a 9% rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? 8) Upstate Bank is offering long-term certificates of deposit with a face value of $100,000 (future value). Bank customers can buy these CDs today for $67,000 and will receive the $100,000 in fifteen years. What interest rate is the bank paying on these CDs? 9) Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 1995. Christie's auctioned the William de Kooning painting Untitled. The highest bid of $2.2 million was rejected by the owner, who had purchased the painting at the height of the art market in 1989 for $3.52 million. Had the seller accepted the bid, what would his annual rate of return have been? 10) Two mutual fund managers, Martha and David, have been discussing whose fund is the top performer, Martha states that investors bought shares in her mutual fund ten years ago for $21 and those shares are now worth $65. David states that investors bought shares in his mutual fund for only $3 six years ago and they are now worth $7.30 which mutual fund manager had the higher growth rate for the management period? 11) You're trying to save to buy a new S120,000 Ferrari. You have $40,000 today that can be BI 18