Do all calculations using $9$ decimal places, retain the $9$ decimal places throughout the

calculations, then when you report answers round to $2$ decimal places. Examples: If the answer

is in years: i$.$e$.,9\mathrm{.}5576$ report $9\mathrm{.}56$ years. If the answer is in dollars, i$.$e$.,$ $$56\mathrm{.}987\mathrm{.}555$ report to

the nearest cent $$56,987\mathrm{.}56.$ If the answer is in percentage terms i$.$e$.,10\mathrm{.}4478\%$ report $10\mathrm{.}45\%$

If the answer is in times i$.$e$.,4\mathrm{.}783$ report $4\mathrm{.}78$ times. You need to be very precise with rounding

and reporting. For instance, if the answer is $9$ times you must report $9\mathrm{.}00,$ the homework grading

program will count $9$ as incorrect, it would count $9\mathrm{.}0$ as incorrect, everything must be carried or

rounded to two decimal places. Another example if the answer is $$48,000,$ you must report

$48,000\mathrm{.}00$

Problem $1$: Calculating Future Values. For each of the following, compute the future value:

Problem $2$: Calculating Present Values. For each of the following, compute the present value:

Problem $3$: Calculating Interest Rates. For each of the following, solve for the unknown interest

rate: $$

Problem $4$: Calculating the Number of Periods. For each of the following, solve for the

unknown number of payments:

Problem $5$: Calculating the Number of Periods$/$Present Value. You are trying to save to buy a

new $$28,000$ Volkswagen. You have $$5,000$ today that can be invested at your bank.

$5$a$.$ The bank pays $5\mathrm{.}00\%$ annual interest on its accounts. How long will it be before you have

enough to buy the car? It will be $$ars$.$

$5$a$.$ Points: $5$

$5$b$.$ Instead of depositing funds in the bank you decide to invest in a mutual fund that you believe

will achieve a $6\mathrm{.}00\%$ annual rate of return. You want to buv the car in $10$ years on the day you

turn $35,$ how much must you invest today? I must invest $

$5$b$.$ Points: $5$

$\_$today.

Problem $6$: Calculating Future Values. You have just made a $$1,400$ contribution to your

individual retirement account $($IRA$).$ Assume you earn an $11\mathrm{.}00\%$ rate of return and make no

additional contributions.

$6$a$.$ When you retire in $25$ years, the account will be worth $

$6$a$.$ Points: $5$

$6$ b$.$ If you wait $5$ years before making your initial contribution, the account will be worth

$

$6$b$.$ Points: $5$

Problem $7$: Calculating Future Values. You are scheduled to receive $$20,000$ in $5$ years. When

you receive it$,$ you will invest it for $10$ more years at $5\mathrm{.}00\%$ per year. At the end of the $10$ years,

the account will be worth &

Points: $10$

Problem $8$: Calculating the Number of Periods. You expect to receive $$55,000$ at graduation

in $2$ years. You plan on investing it at $600\%$ until you have $100,000.$ How long will you have to

wait from now? I will have to wait rears from now.

Points: $10$

Problem $9$: Calculating Present Values. You need $$50,000$ in $12$ years. If you can earn

$0\mathrm{.}25\%$ der month, how much will you have to deposit today? I will have to deposit

Points: $10$

Problem $10$: Calculating Present Values. You have decided that you want to have $$1,000,000$

$($i$.$e$.$ be a millionaire$)$ when you retire in $30$ years.

$10$a$.$ If you can earn a $8\mathrm{.}00\%$ return, how much do you have to invest today? I have to invest

$ today.

$10$b$.$ If you can earn a $12\mathrm{.}00\%$ return, how much do you have to invest today? I have to invest

$

today.

$,$ tod