1.) What is the present value of a security that will pay
$10,000 in 20 years if securities of equal risk pay 3% annually? Do
not round intermediate calculations. Round your answer to the
nearest cent.
2.) Your parents will retire in 23 years. They currently have
$390,000 saved, and they think they will need $1,150,000 at
retirement. What annual interest rate must they earn to reach their
goal, assuming they don't save any additional funds? Round your
answer to two decimal places.
3.) If you deposit money today in an account that pays 5.5%
annual interest, how long will it take to double your money? Round
your answer to two decimal places.