4-6 What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?

4-10 Use both the TVM equations and a financial calculator to find the following values. See the Hint for Problem 4-9.

a. An initial $500 compounded for 10 years at 6%

b. An initial $500 compounded for 10 years at 12%

c. The present value of $500 due in 10 years at a 6% discount rate

d. The present value of $500 due in 10 years at a 12% discount rate

4-14 a. Find the present values of the following cash flow streams. The appropriate interest rate is 8%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculators cash flow register, you must enter CF0 = 0. Note also that it is quite easy to work the problem with Excel, using procedures described in the Chapter 4 Tool Kit.)

Year	Cash Stream A	Cash Stream B
1	$100	$300
2	400	400
3	400	400
4	400	400
5	300	100

b. What is the value of each cash flow stream at a 0% interest rate?

4-25 While Mary Corens was a student at the University of Tennessee, she borrowed $12,000 in student loans at an annual interest rate of 9%. If Mary repays $1,500 per year, then how long (to the nearest year) will it take her to repay the loan?

4-26 You need to accumulate $10,000. To do so, you plan to make deposits of $1,250 per yearwith the first payment being made a year from todayinto a bank account that pays 12% annual interest. Your last deposit will be less than $1,250 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal, and how large will the last deposit be?