Study Problems Select Study Problems are available in MyLab Finance. The Excel format available in MyLab Finance. icon indicates problems in MyLab LO1 5-1. (Power of Compounding) If you'd like to have $5,000,000 at retirement in 45 years and you expect to earn 10 percent annually, which is around the average return over the past 50 years, what lump sum would you have to invest today? 5-2. (Compound interest) To what amount will the following investments accumulate? a. $6,000 invested for 12 years at 12 percent compounded annually b. $7,500 invested for 8 years at 8 percent compounded annually c. $6,400 invested for 10 years at 10 percent compounded annually d. $22,000 invested for 6 years at 6 percent compounded annually 5-3. (Compound value solving for n) How many years will the following take? a. $550 to grow to $1,049.50 if invested at 6 percent compounded annually b. $37 to grow to $63.87 if invested at 9 percent compounded annually c. $110 to grow to $398.60 if invested at 18 percent compounded annually d. $56 to grow to $89.66 if invested at 3 percent compounded annually 5-4. (Compound value solving for r) At what annual rate would the following have to be invested? a. $820 to grow to $1,988.12 in 13 years b. $320 to grow to $423.10 in 6 years C. $57 to grow to $290.30 in 18 years d. $230 to grow to $576.60 in 5 years 5-5. (Present value) What is the present value of the following future amounts? a. $805 to be received 10 years from now discounted back to the present at 10 percent b. $376 to be received 5 years from now discounted back to the present at 5 percent e Mylal 206 PART 2 The Valuation of Financial Assets c. $1,203 to be received 8 years from now discounted back to the present at 4 percent d. $1,203 to be received 8 years from now discounted back to the present at 12 percent 5-6. (Compound value) Obaidullah Hamzah, who recently sold his Ford Mustang, placed $15,000 in a savings account paying annual compound interest of 7 percent. a. Calculate the amount of money that will be accrued if he leaves the money in the bank for 1,5, and 15 years. b. If he moves his money into an account that pays 8 percent or one that pays 10 percent, rework part (a) using these new rates. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you have completed in this