1. What interest rate would I have to earn to triple my money over a 10 year period? Assume annual compounding. (If the answer is 13.95%, enter 13.95. Do not put 0.1395 or use the % symbol.
2. King Felix (Seattle Mariner Pitcher) will receive $29,000,000 in the final year of his contract (7 years from now). If the discount rate is 8% per year, what is the salary worth in today’s dollars? For simplicity assume that he gets the salary in a lump sum exactly 7 years from now. Don’t put any symbols ($ or , ) in your answer.
3. How much did I just borrow from the credit union if my car payments are 412.56 per month for the next 4 years and the interest rate (on an annual basis) is 3.49%?
4. If I invest $5,000 and earn 8% per year, compounded monthly for 5 years, what is the future value?