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1. If you invest $12,000 today, how much will you have in 6 years at 7% ? 2. If you invest $12,000 today, how much will you have in 15 years at 12% ? 3. If you invest $12,000 today, how much will you have in 25 years at 10% ? 4. You have invented the next generation of cell phone and will receive $27,500 per year for the next 10 years as payment. If a 12 percent discount rate is applied, should you be willing to sell your future rights now for $160,000 ? 5. How much would you have to invest today to receive $12,000 in 6 years at 12% ? - How much would you have to invest today to receive $15,000 in 15 years at 8% ? 7. How much would you have to invest today to receive $100,000 in 40 years at 6% ? 2. You just signed you first pro contract. You got a $3 million signing bonus and will receive $1 million, $1.25 million, $1.5 million and $2 milion over the next 4 years. Assuming an 11 percent discount rate, what is the present value of your contract? - If you borrow $9,725 and are required to pay back the loan in 5 equal annual payments of $2.500, what is the interest rate associated with the loan? Your grandfather has offered you a choice of one of the three following alternatives: $5,000 now; $1,000 a year for 8 years; or $12,000 at the end of 8 years. If you can eam 11 percent annually. which alternative should you choose? wo. Your grandfather has offered you a choice of one of the three following altematives: $5,000 now; $1,000 a year for 8 years: or $12.000 at the end of 8 years. If you can earn 11 percent annually. which alternative should you choose? 11. Your grandtather has offered you a choice of one of the three following alternatives: $5,000 now: $1,000 a year for 8 years; or $12,000 at the end of 8 years. If you can eam 12 percent annually. which alternative should you choose? 12. You can purchase a professional sports team. The probability distribution of expected returns for the franchise is as follows: What is the expected rate of return for your investment in this team? 13. What is the standard deviation of the expected returns from the question above

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