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1-​ (Solving for n​) How many years will it take for ​$510 to grow to ​$1 comma 065.01 if​ it's invested

at 10 percent compounded​ annually?


2-​ (Present value) Ronen Consulting has just realized an accounting error that has resulted in an unfunded liability of ​$395 comma 000 due in 26 years. In other​ words, they will need ​$395 comma 000 in 26 years. Toni​ Flanders, the​ company's CEO, is scrambling to discount the liability to the present to assist in valuing the​ firm's stock. If the appropriate discount rate is 8 ​percent, what is the present value of the​ liability?


3- Lance Murdock purchased a wooden statue of a Conquistador for $ 7 comma 900 to put in his home office 6 years ago. Lance has recently​ married, and his home office is being converted into a sewing room. His new​ wife, who has far better taste than​ Lance, thinks the Conquistador is hideous and must go immediately. Lance decided to sell it on​ e-Bay and only received ​$5 comma 500 for​ it, and so he took a loss on the investment. What was his rate of​ return, that​ is, the value of i​?


What was Lance​ Murdock's rate of​ return, that​ is, the value of i​? Enter a negative percentage for a loss.


4-You are offered ​$120 comma 000 today or ​$360 comma 000 in 13 years. Assuming that you can earn 13 percent on your​ money, which should you​ choose?


If you are offered ​$360000 in 13 years and you can earn 13 percent on your​ money, what is the present value of ​$360000​?


5- (Calculating an​ EAR) Your grandmother asks for your help in choosing a certificate of deposit​ (CD) from a bank with a​ one-year maturity and a fixed interest rate. The first certificate of​ deposit, CD​ #1, pays 4.95 percent APR compounded monthly​, while the second certificate of​ deposit, CD​ #2, pays 5.00 percent APR compounded quarterly. What is the effective annual rate​ (the EAR) of each​ CD, and which CD do you recommend to your​ grandmother?


if the first certificate of​ deposit, CD​ #1, pays 4.95 percent APR compounded monthly​, the EAR for the deposit is

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