1. You would like to establish a trust fund that would pay annual payments to your heirs of $93 thousand a year forever. You expect the trust fund to earn an average return of 8.09 percent. How much do you need to deposit into this trust fund today to achieve your goal?

2. You are thinking of investing in a project that will pay you $100,000 6 years from now, and another $100,000 11 years from now. You think the right discount rate for the project is 9.2%. What is the maximum you should be willing to pay for this investment?

3. An investment is expected to produce $2,869 at the end of each year for the next 6 years. Other investments of similar riskiness available to you are yielding 11.2 percent return. What is the maximum you should be willing to pay for this investment?

4. You are not thrilled about spending your entire life working. So, you have decided that you will save $6 thousand a year, starting at the end of this year, and retire as soon as you can accumulate $1 million. If you can earn an average of 8.47 percent on your savings, how many years will pass before you get to retire? Enter answer in years, accurate to two decimal places.

5. How much money must you invest today, at 6.4 percent fixed annual interest rate, in order to have 10 thousand in 10 years?