For each of the following, compute the future value (Do not round intermediate calculations and round

your
final answers to 2 decimal places. (e.g., 32.16)):
Present Value
$ 2,250
8,752
76,355
183,796

Years
11
7
14
8

Interest Rate
13%
9
12
6

Future Value
$ 8,630.69
15,999.00
373,155.46
292,942.90

2.
award:

10 out of
10.00 points
For each of the following, compute the present value (Do not round intermediate calculations and round your
final answers to 2 decimal places. (e.g., 32.16)):
Present Value
$ 6,411.62
31,620.87
19,825.71
17,515.89

Years
13
4
29

Interest Rate
7%
13
14

Future value
$ 15,451
51,557
886,073

3.
award:

10 out of
10.00 points
Solve for the unknown interest rate in each of the following (Do not round intermediate calculations and round
your final answers to 2 decimal places. (e.g., 32.16)):
Present Value
$
240
360
39,000
38,261

Years
4
18
19
25

Interest Rate
5.47 %
6.29
8.55
11.10

Future Value
$
297
1,080
185,382
531,618

4.
award:

10 out of
10.00 points
Solve for the unknown number of years in each of the following (Do not round intermediate calculations and
round your final answers to 2 decimal places. (e.g., 32.16)):
Present Value
$
560
810
18,400
21,500

Years
10.54
8.50
17.56
21.44

Interest Rate
9%
10
17
15

Future Value
$
1,389
1,821
289,715
430,258

5.
award:

10 out of
10.00 points
Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You
presently have $65,000 to invest.
What annual rate of interest must you earn on your investment to cover the cost of your childs college education?
(Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Annual rate of interest

8.87

6.
award:

10 out of
10.00 points
At 6.5 percent interest, how long does it take to double your money? (Round your answer to 2 decimal places.
(e.g., 32.16))
Length of time

11.01

years

At 6.5 percent interest, how long does it take to quadruple it? (Round your answer to 2 decimal places. (e.g.,
32.16))
Length of time

22.01

years

7.
award:

10 out of
10.00 points
In January 2010, the average house price in the United States was $283,400. In January 2000, the average price was
$200,300.
What was the annual increase in selling price? (Do not round intermediate calculations and round your final
answer to 2 decimal places. (e.g., 32.16))
Annual increase in selling price

3.53

8.
award:

10 out of
10.00 points
You're trying to save to buy a new $190,000 Ferrari. You have $40,000 today that can be invested at your bank.
The bank pays 4.8 percent annual interest on its accounts.
How long will it be before you have enough to buy the car? (Do not round intermediate calculations and round
your final answer to 2 decimal places. (e.g., 32.16))
Number of years

33.23

9.
award:

10 out of
10.00 points
You have just received notification that you have won the $1 million first prize in the Centennial Lottery. However,
the prize will be awarded on your 100th birthday (assuming youre around to collect), 80 years from now.
What is the present value of your windfall if the appropriate discount rate is 9 percent? (Do not round
intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Present value

$ 1,013.63

10.
award:

10 out of
10.00 points
Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value
when they were new, how much will your collection be worth when you retire in 2060, assuming they appreciate at
a 4.1 percent annual rate? (Do not round intermediate calculations and round your final answer to 2 decimal
places. (e.g., 32.16))
Future value

$ 3,833.97

11.
award:

5 out of
10.00 points
In 1895, the first U.S. Open Golf Championship was held. The winners prize money was $150. In 2010, the
winners check was $1,350,000.
What was the percentage increase per year in the winners check over this period? (Do not round intermediate
calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Interest rate

8.24

If the winners prize increases at the same rate, what will it be in 2040? (Do not round intermediate calculations
and round your final answer to 2 decimal places. (e.g., 32.16))
Future value

12.
award:

10 out of
10.00 points

$ 14,531,815.64

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. During 2003,
Sothebys sold the Edgar Degas bronze sculpture Petite Danseuse de Quatorze Ans at auction for a price of
$10,311,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,377,500.
What was his annual rate of return on this sculpture? (Negative amount should be indicated by a minus sign. Do
not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Annual rate of return

-4.46

13.
award:

10 out of
10.00 points
Toyota Motor Credit Corporation (TMCC), a subsidiary of Toyota Motor, offered some securities for sale to the
public on March 28, 2008. Under the terms of the deal, TMCC promised to repay the owner of one of these
securities $100,000 on March 28, 2038, but investors would receive nothing until then. Investors paid TMCC
$24,099 for each of these securities; so they gave up $24,099 on March 28, 2008, for the promise of a $100,000
payment 30 years later.
a. Based on the $24,099 price, what rate was TMCC paying to borrow money? (Do not round intermediate
calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Rate of return
4.86 %
b. Suppose that, on March 28, 2019, this securitys price is $42,380. If an investor had purchased it for $24,099 at
the offering and sold it on this day, what annual rate of return would she have earned? (Do not round
intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Annual rate of return

5.27

c. If an investor had purchased the security at market on March 28, 2019, and held it until it matured, what annual
rate of return would she have earned? (Do not round intermediate calculations and round your final answer
to 2 decimal places. (e.g., 32.16))
Annual rate of return

4.62