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Q3. You are to invest $15,000 now and to receive the following amounts in the next five years: year Cash Flow 1 3,000 2 5,000 3 4,000 4 3,000 5 2,000 If the required rate of return is 5%, should you make the investment? T Q4. If you deposit $5,000 annually for the next 10 years, how much will you have if annual interest on deposits is 3%. Q5. If you want to have $100,000 in your saving account after 20 years, how much should you deposit annually if the interest rates = 5%. 06. If the annual interest rate is 6%, what is the future value of $200 deposited in a saving account on a monthly basis after 10 years. 07. A security is currently selling for $8,000 and promises to pay $1,000 annually for the next 9 years, and $1,500 annually in the 3 years thereafter with all payments occurring at the end of each year. If your required rate of return is 7%p.a., should you buy this security? Q8. What is the present value of perpetuity of $5,000 received annually if the required rate of return is 7%? 09. You have just made your first $1.000 contribution to your individual retirement account (IRA). Assume you earn a 12% rate of retum and make no additional contributions. 9. When you retire in 32 years, the account will be worth 9b. If you wait 5 years, he account will be worth

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