Question
1.Find the future value of investing $100,000 today at 5% compounded annually and compounded quarterly for 30 years. 2.Find the future value of investing $5,000
1.Find the future value of investing $100,000 today at 5% compounded annually and compounded quarterly for 30 years.
2.Find the future value of investing $5,000 a year at 5% rate for 30 years.
3.Find the present value of $100,000 due in 20 years at 5% rate.
4.Find the present value of $75,000 per year for 20 years at 5% rate.
5.Find the monthly mortgage payment for a 30-year loan with an amount of $500,000 at 4.75% for 30 years.
6.An investment requires an initial capital outlay of $12,000. The investment is expected to generate future cash flows of $1,000 one year hence, $2000 two years hence, $3,000 three years hence, $4,000 four years hence, $5,000 five years hence. Assume a 10% cost of capital.
7.Find the value of a corporate bond that pays 6% coupon rate, has $100 face value and 5 years to maturity. Market rate is 4%.
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