1.To what amount will the following investment accumulate?

1.To what amount will the following investment accumulate?$3,119, invested today for 33 years at 3 percent, compounded annually.Round the answer to two decimal places.2. You placed $7,262 in a savings account today that earns an annual interest rate of 5 percent compounded annually. How much you will have in this account at the end of 8 years? Assume that all interest received at the end of the year is reinvested the next year.Round the answer to two decimal places3. What is the present value of the following future amount?$215,518, to be received 6 years from now, discounted back to present at 8 perecent, compunded annually.Round the answer to two decimal places4. How many years will the following take?$2,917 to grow to $61,207 if invested at 3 perecent, compounded annually.Round the answer to two decimal places5. Cooling Tools, Inc. is currently producing 1,479 of small refrigerators per month but the company’s CEO plans to increase production at a rate of 5.00 percent per month until the firm is producing 5,970 of refrigerators per month. How many months will this take?Round the answer to two decimal places.6. Upon graduating from college, you make an annual salary of $76,833. You set a goal to double it in the future. If your salary increases at an average annual rate of 4.33 percent, how long will it take to reach your goal?Round the answer to two decimal places.7. At what annual rate would the following have to be invested?$2,626, to grow to $91,242, in 26 years.Round the answer to two decimal places in percentage form.8. A firms dividends have grown over the last several years. 3 years ago the f irm paid a dividend of $2. Yesterday it paid a dividend of $4. What was the average annual growth rate of dividends for the firm?Round the answer to two decimal places in percentage form.9. TO what amount will the following investment accumulate? $12,840, invested today for 24 years at 11.79 percent, compounded monthly.Round the answer to two decimal places.

10. You placed $8,798 in a savings account today that earns an annual interest rate of 3.28 percent, compunded semiannually. HOw much will you have in this account at the end of 20 years? Assume that all interest received at the end of the period is reinvested the next period.Round the answer to two decimal places11. Stephen plans to purchase a car 8 years from now. The car will cost $58,198 at that time. Assume that Stephen can earn 9.26 perecent (compounded monthly) on his money. HOw much should he set asisde today for the purchase?Round the answer to two decimal places.12. What is the accumulated sum of the following stream of payments?$2,306 every year at the end of the year for 15 years at 9 percent compounded annually.Round the answer to two decimal places.13.For the next 5 years, you decide to place $1,252 in equal year-end deposits into a savings account earning 6.62 percent per year. How much money will be in the account at the end of that time period?Rond the answer to two decimal places.14. What is the present value of the following annuity? $1,038 every year at the end of the year for the next 12 years, discounted back to the present at 8.67 percent per year, compounded annually?15. You have accumulated some money for your retirement. You are going to withdraw $99,046 every year at the end of the year for the next 17 years. How much money have you accumulated for your retirement? Your account pays you 7.79 perecent per year, compounded annually. To answer this question, you have to find the present value of these cash flows.ROund the answer to two decimal places.16. You have just purchased an investment that generates the following cash flows for the next four years. You are able to reinvest these cash flows at 3.65 perecent, compounded annually. How much is this investment worth today?End of year1.$2,0422.$4433.$4,2574.$4,837What is the present value of this investment if 3.65 perecent per year is the appropriate discount rate?Round the answer to two decimal places.17. You have been offered the opportunity to invest in a project that will pay $3,855 per year at the end of years one through three and $10,206 per year at the end of years four and five. IF the appropriate discount rate is 12.74 perecent per year, what is the present value of this cash flow patttern?Round the answer to two decimal places.

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