Use the space to the left to solve for the following questions. Make sure to show your work,
not just the answer! (use excel)
1.) If you have $25,000 and invest the lump sum in a mutual fund that guarantees
a 10% return, how much will you have in 20 years?
2.) In 5 years, you would like to purchase a $12,000 fishing boat. Assuming you could
find an investment vehicle that yields 8%, how much (lump sum) would you need
to invest today?
3.) You have $15,000 today. In 12 years, you would like to have $33,000. What interest
rate do you need to accomplish your goal? (Round to 2 decimal places)
4.) What is the present value of an annuity that pays out $1,000 a year for 17 years, at an
11% interest rate?
5.) What is the present value of the following cash flow streams, assuming a 7% interest rate?
	Year	Cash Flow
	1	$1,000
	2	$500
	3	$3,000
	4	$5,000
	5	$200
	6	$750
6.) What is the future value of that same cash flow stream?
7.) You decide to invest $10,750 in a hot dog cart. Based on similar hot dog cart investments,
you anticpate the following cash flows: Year 1 $200, Year 2 $750, Year 3 $2,000, Year 4 $3,000,
Year 5 $4,000, Year 6 $5,000. What is your yield (%) on this investment?