1) If you put money today in the account which pays 8.4% annual interest, how much time will it take to double your money? Round your answer to the nearest whole.

2) What is the future value of 7%, 6-year ordinary annuity which pays $400 each year? If this were the annuity due, what would its future value be? Round your answer to the nearest cent.

3) During 2012 the john the Pieman corporation had= $10 million in sales, $5.2 million in operating costs, and $200,000 in interest expense. It also paid 40% of its pre tax income to U.S. government as income tax expense. Compute the john’s Net After tax Income for 2012?

4) prepare down the major monetary tools Federal Reserve System uses? How does monetary policy have an effect on main economic variables?

5) The Fed attempts at times to influence slope of the yield curve. Earlier, this was referred to as “operation twist” and in recent times as “quantitative easing.” Why may the Fed wish to change slope of yield curve?