FALL 2023 Chapter 12A Fun \& Furiting Fxercises De NOT ae Excel for questiens 1 thresgh 5 Due Bute! Wednenday, Novrmber 2h Question 1) First Bank pays 5 percent simple interest on its savings account balances, whernos Second Rank pays 5 percent interest compounded annually. If you made a 545,000 deposit in cach bank, how much more money would you eam from your Second Bank account at the end of 25 years? Question 2) Assume the total cost of a college ediation will be 5375,000 when your child enters college in 15 years. You presently have $125,000 to imvest. What annual rate of interes: must you earn on your investment to cover the cout of your child's college educarion? Question 3) You're trying to save to buy a new $420,000 bouse, You bave $10,000 today that long will is be before you have encugh to boy the houre? Question 4) You huve just received notification that you have wob the $50 millian firut prize in the Millennium Lattery. However, the prixe will be awarded on your 100 binhday (axsuming you're around to colloct), 80 ycars trom now. What is the peresent walie of your wratfall if the appropriate discount rate is 14 percent? Question S) You have fust made your firs $7,560 contribution to your IRA. Aswuming yoa rurn in 12 percern rate of refum and nulue no additanal conriburions, whir will your acrount be sughentan invecment stratrgy