Calculating present values [LO 5.2] Suppose you are still committed to owning a $245000 Ferrari (see Problem 9). If you believe your mutual fund can achieve an annual rate of return of 11.2 per cent and you want to buy the car in nine years (on the day you turn 30), how much must you invest today? Calculating future values [LO 5.1] You have just made your first $5500 contribution to your superannuation retirement account. Assuming you earn a return of 10 per cent per year 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? (Does this suggest an investment strategy?) Calculating future values [LO 5.1] You are scheduled to receive $20000 in two years. When you receive it, you will invest it for six more years at 6.8 per cent per year. How much will you have in eight years? Calculating the number of periods [LO 5.4] You expect to receive $10000 at graduation in two years. You plan on investing it at 9 per cent until you have $60000. How long will you wait from now?