Wentamalomak Case

1-You estimate you will need about $ 80,000 to send your child to college in eight years. You have about $35,000 nom. If you can earn 20% per year, will you make it? At what rate will you just reach that goal?

2-Suppose you have just celebrated your 19th birthday. A rich uncle set up trust fund for you that will pay you $100,000 when you turn 25 years if the relevant discount rate is 11%,how much is this fund worth today.

3-You've been offered an investment, that will double your money in 12 years .What rate pf return are you being offered.

4-You have decided that you want to be a millionaire when you retire in 25 years. If you can earn 11 percent annual return, how much do have to invest today?

5-Suppose you need $ 400 to buy textbooks next year. You can earn 7% on your money. How much do you have to put today.

5-You would like to buy a new car .You have $50,000,but the car costs $68,500.If you can earn 9 percent ,how much do you have to invest today to buy the car in two years. Do you have enough money. Assume that the price will stay the same.

6-Your company proposes to buy an investment for LE 335 .The investment is very safe, you will sell off the investment in three years for LE 400 .You know you could invest the 335 elsewhere for 10 % .What do you think of the proposed investment?

7-DS has $20,000 that she can deposit in any of the three saving accounts for a three year period. Bank A compounds interest on an annual basis. Bank B compounds interest twice each year, and bank C compounds interest each quarter. All three banks have a stated annual interest rate of 4%.What amount will DS have at the end of the third year ,leaving all interest paid on deposits in each bank

8-You have a choice of accepting either of a two 5 year cash flow streams or single amounts. One cash flow