3. You want to save enough money to retire as a millionaire. If you could earn 10% with common stocks, how much would you have to set aside per year to have $1,000,000 when you are 65? a. If you were going to make a deposit monthly, how much would you have to set aside per month to have $1,000,000 when you are 65? b. If you were able to earn 11%, how much would you have to set aside per month to have $1,000,000 when you are 65? c. What type of a problem is this? ___________ 4. If you were going to buy your office from Mrs. Beach for $500,000 with a 10% down payment, 15 years financing with a 6% interest rate, how much would your payments be each month? a. What would be the principal and interest payment on the first payment? b. What would be the principal and interest payment on the twelfth payment? c. What type of a problem is this? ___________ 6. You want to purchase a truck for $25,000 and you have $3,450 to put down. How much will your payments be if you financed the truck for 60 months at 6%? a. How much would the payment be if rate of interest is 5% and you only financed the truck for 48 months? b. Assuming that you would only finance the truck for 4 years, how much would you need to put down to get your payment to $450.00? c. What type of a problem is this? ___________ 9. You want to purchase a business with the following cash flows. How much would you pay for this business today assuming you needed a 14% return to make this deal? a. Year 2011 $150,000