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5. Future value You receive $750 today and deposit it in your savings account that has an interest rate of 3%. What will your savings account balance be in one year? Question 6 1pts 6. The bribe As an incentive for you to stay in school your Uncle Henry offers to pay you $5,000 in one year. If the interest rate is 4%, how much is the $5,000 payment worth to you today? 7. The piggy bank Your little sister Tiffany has received a special Piggy bank with a $20 bill in it. This is a special locked Piggy and will unlock itself in one year. Tiffany has offered to sell you Piggy today. Unfortunately, this nice Piggy bank will completely destroy itself in one year and have no value, so plan on getting only the $20 ! If your savings rate is 5%, how much is the $20 in Piggy worth to you today if you can't get at it for a year? Question 8 1 pts 8. The payment Your friend wants to pay back the money she borrowed from you. She offers you $300 today or $315 in one year. If you could save at 6%, what is the future value of the one you would choose? Your little sister Tiffany is beginning to cause you some concern. She wants to borrow $480 from you today and promises to pay you $500 in one year. You earn 3% on your deposits. Disregarding what your 9 year-old sister would need $480 for, would this be a good loan for you to make? After doing your calculations, rather than entering a numeric answer, please answer true if you would make the loan or false if you would not make the loan. True False

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