Question
1. What is the FV of 212 after 4 years if it earns 5%, annual compounding? 2. What is the FV of a 6 year,
1. What is the FV of 212 after 4 years if it earns 5%, annual compounding?
2. What is the FV of a 6 year, $451 annuity due if the annual interest rate is 5%?
3. What is the annual interest rate that would cause $200 to grow to $289 in 8 years?
4. What is the future value of a 6-year, $203 ordinary annuity if the annual interest rate is 5%?
5. What is the PV of a 6 year, $289 annuity due if the annual interest rate is 5%?
6. What is the value of a perpetuity that makes a payment of $155 per year? Assume the current interest rate is 4%.
7. What is the PV of a 6 year, $870 ordinary annuity if the annual interest rate is 5%?
8. What is the PV of 1,570 to be received in 5 years if the interest rate is 3%, annual compounding?
If you don't feel like answering all the questions can you at least provide the equations or formulas to solving them?
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