Question 2 a. How long will it take to increase your money tenfold with the interest rate of 15 percent? b. On the advice of your broker 15 years ago, you invested in a $6 stock that is now selling for $30. At what rate has your capital grown? c. Your father is about to retire. His firm has given him the option of retiring with a lump sum of $50,000 or an annuity of $8,000 for ten years. Which is worth more now, if the discount rate is (1) 6%, (2) 18%? d. You are offered a $15,000 life insurance policy requiring thirty annual payments of $195 each. What is the compound value of the payments that you will have made after the policy is paid up, assuming that the discount rate is 10 percent? a. Providing formulas in symbols. Formulas are those used in the lecture notes and the text book. Excel or Financial Calculator formulas are NOT appropriate substitutes. b. Illustrating how you plug numbers, given in each question, into these formulas. c. Writing a short verbal summary at the end of the problem Please use posted HW solutions as a guide on how detailed your solutions should be. 8. Draw timelines and graphs to illustrate your answers. Ves Requirements for solutions: As always, you need to write your detailed solutions, in which you need to: 1. Provide the appropriate formula for each step in each problem. Formulas should be written in symbols (please, do not write Excel formulas -- they do not count). 2. Show how you plug numbers from the problem into each formula 3. Present time lines and graphs, etc., where appropriate. 4. Write a short verbal comment at the end of each step in each problem, explaining what you achieved with your calculations 5. Write a short verbal conclusion at the end of each problem with the summary of your results. 6. A numerical answer by itself (even if it is correct) without a detailed solution and explanations does not deserve ANY credit. 7. Use my posted solutions as examples of how to write a detailed solution to a