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8) You have borrowed S850 from your sister and you have promised to pay her $1000 after 3 years With annual compounding, find the implied rate of interest for this loan? 9) You expect to receive S10,000 as a bonus after 5 years on the job You have calculated the present value of this bonus and the answer is $8000. What discount rate did you use in your calculation? 10) You decide to put $12,000 in a money market fund that pays interest at the annual rate of 8.4%, compounding it monthly You plan to take the money out after one year and pay the income tax on the interest eamed. You are in the 15% tax bracket Find the total amount available to you after taxes. 11) Jack has deposited S6,000 in a money market account with a variable interest rate. The account compounds the interest monthly Jack expects the interest rate: to remain at 8% annually for the first 3 months, at 9% annually for the next 3 months, . and then back to 8% annually for the next 3 months. Find the total amount in this account after 9 months 12) You would like to buy a house that is currently on the market at $85.000, but you cannot afford it right now. However, you think that you would be able to buy it after 4 years. If the expected inflation rate as applied to the price of this house is 6% per year, what is its expected price after four years? 13) What will S247.000 grow to be in 9 years if it is invested today in an account with an annual interest rate of 11%? 14) Suppose you make an investment of S1,000 This first year the investment returns 12%, the second year it returns 6%, and the third year in returns 8% How much would this investment be worth, assuming no withdrawals are made? 15) Happy Harry has just bought a scratch lottery ticket and won 10,000. He wants to finance the future study of his newly bom daughter and invests this money in a fund with a maturity of 18 years offering a promising yearly return of 6%. What is the amount available on the 18th birthday of his daughter

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