1) You think you will be able to deposit $5,000 at the end of each of the next five years in a bank account paying 5% interest. You currently have $0 in the account.
How much will you have in 5 years?

How much in 10 years if you add nothing to the account after the fifth year?


2) If you deposit $1000 in one year, $2000 in two years and $3000 in three years.
How much will you have in three years at 10 percent interest?

How much in 5 years if you add nothing to the account after the third year?


3) Suppose you invest $1000 in a mutual fund today and $2000 in one year.
If the fund pays 9% annually, how much will you have in two years?


4) Suppose you plan to deposit $1000 into an account in one year and $200 into the account in three years.
How much will be in the account in five years if the interest rate is 12%?


5) You are offered an investment that will pay $500 in year 1, $1000 the next year, $1500 the following year, and $2000 at the end of the 4th year. You can earn 7% on similar investments.
What is the most you should pay today for this one?
6) 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 8% on your money, how much would you be willing to pay?


7) Your broker calls you and tells you that he has this great investment opportunity. If you invest $500 today, you will receive $250 in one year and $500 in two years.
If you require a 15% 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 $125,000 per year for 20 years beginning in 40 years.
How much would you be willing to invest today if you desire an interest rate of 12%?