5. Calculate the 1-year present worth factor (P/F, r, n), for discount rates of (a) 10%, (b) 20% and (c) 30%. 6. If the present value of $150 is $130, what is the 1-year future worth factor? 7. What are the annual payments on a car loan of $20,000 financed at a 14% annual interest rate for 5 years? 8. If a bank pays 5% interest annually on 5-year certificates of deposit (CDs), what will a $10,000 investment in a CD today be worth in 5 years? 9. Common stock will pay a cash dividend of $4 next year. After that, the dividends are expected to increase indefinitely at 4% per year. If the discount rate is 14%, what is the present value of the stream of dividend payments? 10. You just won a lottery that pays you $100,000 a year for 20 years. Are you a millionaire? What if the payments are forever, a perpetuity? Assume that r = 12%. (Hint: what is the present value of these cash flow streams?) 11. You need to borrow $25,000 to purchase new computer equipment for your business. The bank quotes you an APR of 10% compounded monthly. Assuming that you will pay off the loan in 3 equal annual payments, what is the remaining principal balance on the loan after you make the first loan payment? 12. A mechanical device will cost $30,000 when purchased. Maintenance will cost $2,000 each year. The device will generate revenues of $5,000 each year for five years. At the end of the fifth year, the salvage value of the device is $6,500