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Write your answers on the line. Answer the questions, and then put the document in the drop box. Refer to the study aid given for this chapter in the chapter notes. You may use either the interest factor table at the back of your textbook or a calculator that has financial functions. 1. What is the future value of the following investments? a.$4,000 invested for 11 years at 9% compounded annually _______7960________ b.$8,000 invested for 10 years at 8% compounded annually __________14000_____ 2. How many years will the following take? Work backward to find the interest factor and then looking at the interest rate for the problem in the correct interest factor table in the back of the text, look locate your interest factor and the corresponding year is your answer. a.$550 to grow to $1,043.90 if invested at 6% compounded annually____________ b.$40 to grow to $88.44 if invested at 12% compounded annually ______________ 3. At what annual rate would the following have to be invested? Work backward to find the interest factor and then looking at the number of years for the problem in the correct interest factor table in the back of the text, look locate your interest factor and the corresponding interest rate is your answer. a.$550 to grow to $1,898.60 in 13 years _______________ b.$275 to grow to $406.18 in 8 years _______________ 4.What is the present value of the following future amounts? a.$800 to be received 10 years from now discounted back to present at 10% _______________ b.$400 to be received 6 years from now discounted back to present at 6% _______________ 5.What is the future value of each of the following streams of payments? a.$500 a year for 10 years compounded annually at 6% _________________ b.$150 a year for 5 years compounded annually at 14% _________________ 6. What is the present value of the following annuities? a.$3,000 a year for 10 years discounted back to the present at 8% ________________ b.$50 a year for 3 years discounted back to the present at 3% _________________ 7.Trish Nealon, who recently sold her Porsche, placed $20,000 in a savings account paying annual compound interest of 7%. Calculate the amount of money that will have accrued if she leaves the money in the bank for 1, 5, and 15 years. a. 1 year ___________________ b. 5 years ___________________ c. 15 years ___________________ 8. Sales of a new marketing book were 10,000 copies this year and were expected to increase by 16% per year. What are expected sales in year three? ___________________ 9. You lend a friend $15,000, for which your friend will repay you $37,313 at the end of 5 years. What interest rate are you charging your friend? ___________________