(Appendix 1) Use the tables in Appendix A to determine the answers to the following questions.

a. Edith Roundtree wishes to have $25,000 in 8 years. She can make an in¬ vestment today which will earn 7 percent each year, compounded annually. What amount of investment should she make to achieve her goal (ignore tax)?

b. Lillith Frazier is going to receive $100,000 on her fiftieth birthday, 20 years from today. Lillith has the opportunity to invest money today in a government-backed security paying 6 percent, compounded semiannually. How much would she be willing to receive today instead of the $100,000 in 10 years (ignore tax)?

c. Demi Ward has $45,000 today that she intends to use as a down payment on a house. How much money did Demi invest 8 years ago in order to have $45,000 now, if her investment earned 9 percent compounded annually (ig¬ nore tax)?

d. Pat Sawhack is the host of a television game show that gives away thousands of dollars each day. One prize on the show is an annuity, paid to the winner, in equal installments of $10,000 at the end of each year for the next 5 years. If the winner has an investment opportunity to earn 5 percent, semiannually, what present amount would the winner take in exchange for the annuity (ignore tax)?

e. Rebecka Howe is going to be paid modeling fees for the next 10 years as follows: year 1, $15,000; year 2, $25,000; year 3, $28,000; years 4-8, $50,000; year 9, $30,000, and year 10, $21,000. Rebecka can invest her money at 6 percent, compounded semiannually. What is the present value of her future modeling fees (ignore tax)?

f. Your friend has just won the lottery. The lottery will pay her $100,000 per year for the next 10 years. If this is the only asset owned by your friend, is she a millionaire (one who has a net worth of $1,000,000 or more)? Explain (ignore tax).