There is an expected payment thirty years from today of$9,000,000 and interest rates for the thirty-year period

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There is an expected payment thirty years from today of $9,000,000 and interest rates for the thirty-year period are yielding 4%, what is the present value for the future payment?

2) a) A bank wants to increase deposits and is looking to increase their savings interest rate to achieve this goal. The bank wants to raise $9,000,000 through this program and is willing to pay 3% to achieve the goal. The bank expects to reduce this introductory offer in 5-years and thus all depositors will remove their funds from their account. How much will they have to pay out in interest to achieve their goal?

b) A bank wants to increase deposits and is looking to increase their savings interest rate to achieve this goal. The bank wants to raise $1,000,000 through this program and is willing to pay 5% to achieve the goal. How long could the banks keep the accounts active before paying $9,000,000 in interest?

c) A bank wants to increase deposits and is looking to increase their savings interest rate to achieve this goal. What interest rate could the bank pay if they wanted to pay $1,000,000 in interest in 9 years?

3) You think you will be able to deposit $9,000 at the end of each of the next five years in a bank account paying 6% interest. You currently have $0 in the account. How much will you have in 5years? How much in 10 years if you add nothing to the account after the fifth year?

4) If you deposit $1000 in one year, $2000 in two years and $3000 in three years, $4000 in four years, $5000 in five years. How much will you have in five years at 9 percent interest? How much in 10years if you add nothing to the account after the fifth year?

5) a) Suppose you invest $2500 in a mutual fund today and $5000 in one year. If the fund pays 9% annually, how much will you have in two years?

b) Suppose you plan to deposit $2500 into an account in one year and $5000 into the account in three years. How much will be in the account in five years if the interest rate is 9%?

6) You are offered an investment that will pay $1000 in year 1, $2000 the next year, $3000 the following year, and $4000 at the end of the 4th year. You can earn 9% on similar investments. What is the most you should pay today for this one?

7) a) You are considering an investment that will pay you $1,000 in one year, $2,000 in two years and $3,000 in three years. If you want to earn 9% on your money, how much would you be willing to pay?

b) Your broker calls you and tells you that he has this great investment opportunity. If you invest $700 today, you will receive $250 in one year and $500 in two years. If you require a 9% return on investments of this risk, should you take the investment?

8) You are offered the opportunity to put some money away for retirement. You will receive $150,000 per year for 20 years beginning in 35 years. How much would you be willing to invest today if you desire an interest rate of 9%?

9) Suppose you begin saving for your retirement by depositing $4,000 per year in an IRA. If the interest rate is 9%, how much will you have in 40 years?

10) You want to have $2 million to use for retirement in 40 years. If you can earn 9% per year, how much do you need to deposit on anannual basis if the first deposit is made now? How much do you need to deposit on an annual basis if you want to have $3 million?