**Q1: Your neighbor offers you an investment opportunity which will pay a single lump sum of $2,000 five years from today. The investment requires a single payment of $1,500 today. What is the annual rate of return on this investment?**

Q2: Rana needs to accumulate $2,000 in 18 months. If she can earn 6% at the bank, compounded quarterly, how much she deposits today?

Q3: How much should an investor have in a retirement account on his 65th birthday if he wishes to withdraw $40,000 on that birthday and each of the following 14 birthdays, assuming his retirement account is expected to earn 14.5%?

Q4: How long does it take for your money to grow to ten times its orginal value if the interest rate 5% per year?

Q5: What is the price on a 20-year, 8% annual coupon bond, assuming that the market rate is 12%.