1.Calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compoundedannually, at the rate specified over the given period.Round to the nearest cents

Single Cash Flow Interest Rate (%) Year Future Value ($)

865,000 Interest Rate 4 Year Future 2

254,000 Interest Rate 16 Year Future 22

151,000 Interest Rate 13 Year Future 14

593,000 Interest Rate 9 Year Future 26

___________________________________________________________________________________

Single Cash Flow ($) Interest Rate ($) Year Future Value ($)

865,000 Interest Rate 4 Year Future 2 __________

254,000 Interest Rate 16 Year Future 22 ____________

151,000 Interest Rate 13 Year Future 14 _________

593,000 Interest Rate 9 Year Future 26 ___________

2.You have $440in an account which pays 4.1% compounded annually. If you invest your money for

9 years, then how many dollars of interest will you earn by the end of theterm?

The amount of interest you will earn by the end of the term is $____________(Round to the nearestcent.)

3.Ted Roberts has been offered the following future paymentsnyears from today. If his opportunity cost

isi, compoundedannually, what value would he place on eachopportunity?

FutureInterestYearsPresent

ValueRate (%)Value ($)

8,200613____________Round to the nearest cents.

6,800826___________Round to the nearest cents

6,4001629__________ Round to the nearest cents

2,6001123__________ Round to the nearest cents

4. Maria expects to receive a payment of $38,000 in 4 years. At a discount rate of 11%, what is the present value of thispayment?

What is the present value of thepayment?

$__________(Round to the nearestcent.)

5.You have $400 in an account which pays 4.3% compounded annually. How many additional dollars of interest would you earn over 5 years if you moved the money to an account earning 6.4%?

How many additional dollars of interest would you earn over

5 years from the account that pays 6.5%?

$____________Round to the nearestcent.)

6.Andy promises to pay Opie $6,000 when Opie graduates from Mayberry University in

12 years. How much must Andy deposit today to make good on hispromise, if he can earn

7% on hisinvestments?

How much must Andy deposit today to make good on his

promise? $___________(Round to the nearestcent.)

7.You will receive a $100,000 inheritance in 8 years. You could invest that money today at 8% compounded semi dash semi-annually.

What is the present value of yourinheritance?

________Round to the nearestcent.)