Finance 6601 practice problems Show all work so that I can understand your thought process. 1. You invest $220,000 in a savings account, the interest rate is 12% per year and the length of time is 15 years. Compounding is monthly. What is the value of the savings account at the end of ten years? 2. How many periods does it take for money to grow four fold if the interest rate is 8% per period? Compounding is annual. 3. You believe that you will need $2,200,000 by the time you retire in 30 years. Assume an interest rate of 8% per year. How much will you need to contribute to your IRA (individual retirement account) each year? 4. If the interest rate is 10% and compounding is monthly, how long does it take for your money to triple? 5. Yo-Yo Ma left his cello in a taxicab in New York. They said on the radio that it was worth $10,000,000. The cello was purchased for $90,000 forty years ago. What is the rate of appreciation of the cello? 6. What is the value of the bond if the coupon is 7%, ten years to maturity, and the YTM is 8%? As in most bonds, coupons are paid semiannually