Question
1). One Year Future Value What is the future value of $2,000 deposited for one year earning 6% interest rate annually? 2). Three Years Future
1). One Year Future ValueWhat is the future value of $2,000 deposited for one year earning 6% interest rate annually?
2). Three Years Future ValueWhat
is the future value of $3,000 deposited for three years earning 7% interest
rate annually?
3). Present Value of a PerpetuityA
perpetuity pays $240 per year and interest rates are 6.9 percent. How much
would its value change if interest rates increased to 9.4 percent?
4).Future ValueGiven a 7.75 percent interest rate, compute the year 7 future value of deposits made in years 1, 2, 3, and 4 of $1,800, $2,000, $2,300, and $2,300.
5). Future Value of an AnnuityWhat
is the future value of a $1,300 annuity payment over 6 years if the interest
rates are 9 percent?
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