CHAPTER REVIEW AND SELF-TEST PROBLEMS 4.1 4.2 4.3 Calculating Future Values. Assume you deposit $1000 today in an account that pays 8% interest. How much will you have in four years? Calculating Present Values. Suppose you have just celebrated your 19th birthday. A rich uncle set up a trust fund for you that will pay you $ 100 000 when you turn 25. If the relevant discount rate is 11%, how much is this fund worth today? Calculating Rates of Return. You have been offered an investment that will double your money in 12 years. What rate of return are you being offered? Check your answer using the Rule of 72. Calculating the Number of Periods. You have been offered an investment that will pay you 7% per year. If you invest $10 000, how long until you have $20 000? How long until you have $30 000? 4.4