Question
1. What is the future value exactly 25 years after the last deposit of 20 annual deposits of $500 per year (first deposit to be
1. What is the future value exactly 25 years after the last deposit of 20 annual deposits of $500 per year (first deposit to be made exactly one year from today) given an interest rate of 6.75% p.a.?
2. What is the future value at the end of year 14 of a $20,000 invested today into an account that 6.75% p.a., but with continuous compounding?
3. Assume that I will deposit $750 into an account exactly 10 years from today. How much will be in my account at the end of year 50 (i.e., 50 years from today), assuming that my account pays interest of 6.25% p.a., but with daily compounding?
4. What is the present value of a perpetuity that pays $1,000 every year, with the first cash flow occurring today if the appropriate interest rate for this perpetuity is 6.95% p.a.?
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