Assume that a gallon of milk costs $3.69today. If the average annual inflation rate over the past 30 years was 2.16% p.a., what did a gallon of milk cost 30years ago?


What is the future value at the end of year 15of $10,000 deposited today into an account that pays interest of 4.5% p.a., but with monthly compounding?


Chun-Li is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Chun-Li believes that she should earn an annual rate of 7.5 percent on this investment. How much should Chun-Li pay for this investment?