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1) How much will accumulate in an account with an initial deposit of $100, and which earns 10% interest compounded quarterly for three years? 2)

1) How much will accumulate in an account with an initial deposit of $100, and which earns 10% interest compounded quarterly for three years?

2) A perpetuity of $5,000 per year beginning one year from now is said to offer a 15% interest rate. What is its present value?

3) What is the present value of the following payment stream, discounted at 8% annually: $1,000 at the end of year 1, $2,000 at the end of year 2, and $3,000 at the end of year 3?

4) What is the present value of the following set of cash flows at an interest rate of 7%; $1,000 today, $2,000 at end of year one, $4,000 at end of year three, and $6,000 at end of year five?

5) What will be the monthly payment on a 30-year home mortgage of $75,000 at 12% interest?

6) How much can be accumulated for retirement if $2,000 is deposited annually, beginning one year from today, and the account earns 9% interest compounded annually for 40 years?

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