1.

Prior to the start of their college studies, Rita Rivera's parents deposited $15,000 on a
5-year CD at Liberty Bank that pays 4% interest. Rita will receive the money, plus
interest, if she finishes her high school at the end of 5 years. Determine the balance in
Rita's account after 5 years. (4 points)
2. Suppose that a Puerto Rico government bond pays $3,255.80 within 4 years to 4%
interest. Calculates the current value of the bonus. Determines the value of the bond
assuming that it will beat 5% interest in 6 years. (8 points)
3. Determines the present value of $2,500,000 to be paid after 25 years if the discount
rate is 7%. (4 points)
4. Suppose the U.S. Federal Reserve offers a bonus for $635.20 to 8 years of
maturation. You won't have to issue payments until the maturation date, at which point
you'll receive $950. Calculate the interest rate if you decide to buy it. Determine the
interest rate if you manage to buy it at a price of $555. (6 points) 
5. Let's say Liver Corporation earned $1.57 per share in 2010 and after 8 years, in 2018,
the company earned $3.10. Determines the rate of earnings per share (EPS) growth
over the 8 years. (4 points)
6. If an investor intends to double $25,000 by investing in a bank that pays 7% interest
per year, it determines how long it would take to double the investment. (4 points)
7. If you save money from the age of 20 and save $4 daily and, at the end of the year,
everything saved is invested in an investment fund account that has a 7% annual return,
determine the account balance when you reach 62 years. (6 points)
8. Suppose land river company decides to acquire a housing complex within 6 years and
estimates it can save $15,000 a year. The company deposits the money at the end of
the year with World Central Bank at an interest rate of 5%. Calculates the balance after
age 6 and calculates the account balance if the rate drops to 4%. (6 points)
9. The family attorney notified you that you are the sole heir to your lost uncle's legacy.
You have two options to receive the inheritance: receive $500,000 at the end of each of
the next 10 years or receive a one-time payment of $2,500,000. Determine which option
is best. (4 points)
10. Calculates the Present Value of an Ordinary Annuity (PVA) that includes 12
payments of $200 and an interest rate of 9%. (6 points)
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