2a Future Value: Ordinary Annuity versus Annuity Due

What is the future value of a 5%, 5-year ordinary annuity that pays $350 each year? Round your answer to the nearest cent. $

If this were an annuity due, what would its future value be? Round your answer to the nearest cent. $

2b Present and Future Value of an Uneven Cash Flow Stream

An investment will pay $100 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and $800 at the end of Year 6. If other investments of equal risk earn 12% annually, what is its present value? Round your answer to the nearest cent. $

What is its future value? Round your answer to the nearest cent. $

2c Annuity Payment and EAR

You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 4 years (48 months), and the nominal interest rate would be 6%, with interest paid monthly. What is the monthly loan payment? Round your answer to the nearest cent. $

What is the loan's EFF%? Round your answer to two decimal places. %

2d Present and Future Values of Single Cash Flows for Different Periods

Find the following values, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences. (Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.)

An initial $500 compounded for 1 year at 4.6%. Round your answers to the nearest cent. $

An initial $500 compounded for 2 years at 4.6%. Round your answers to the nearest cent. $

The present value of $500 due in 1 year at a discount rate of 4.6%. Round your answers to the nearest cent. $

The present value of $500 due in 2 years at a discount rate of 4.6%. Round your answers to the nearest cent. $

2f Present and Future Values of Single Cash Flows for Different Interest Rates

Use both the TVM equations and a financial calculator to find the following values. Round your answers to the nearest cent. (Hint: Using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.)

An initial $200 compounded for 10 years at 9 percent. $

An initial $200 compounded for 10 years at 18 percent. $

The present value of $200 due in 10 years at a 9 percent discount rate. $

The present value of $200 due in 10 years at a 18 percent discount rate. $