Reference no: EM132398290

1. You have the opportunity to purchase an investment that will pay $1,625,000 at the end of 40 years. If your required rate of return on this investment is 13.2%, what is the maximum amount you should be willing to pay for it? $11,402.40

2. Your grandparents deposited a $10,000 birthday check for you when you were born 22 years ago. Today, the account (to which no other deposits have been made) is worth $92,640. What annually compounded rate of return has the account earned? 10.65%

3. In going through some old papers, you find an account statement that shows a current balance of $857,000. The papers also show that the account has earned an annually compounded rate of return of 11%, and you know that the account was originally opened with a deposit of $10,000. Assuming that no other deposits have been made to the account since the original deposit, how long ago (in years) was the account opened? 42.65

4. The estimated population of the United States from the 1990 census was 248,709,873. The total population estimate from the 2000 census was 405,122,176.  What was the annual population growth rate during this period? 5.00%

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