A. Find the FV of $1,000 invested to earn 10% after 5 yrs. Answer thisquestion byusing a math formula and also by using theExcel function wizard.

B. Now create a table that shows the FV at 0%, 5%, and 20% for 0,1,2,3,4and 5yrs. Then create a graph with years on the horinzantal axis and FV on the verical axis to displayyour results.

C. Find the PV of $1,000 due in 5yrs if the discount rate is 10%. Again, work the problem with a formulaand also by using the function wizard.

D. A security has a cost of $1,000 and will return $2,000after 5 yrs. What rate of return does the security provide?

E. Suppose California's population is 30 million people, and its population is expected to grow by 2% per yr. How long would it take for the population to double?

F. Find the PV of an annuity that pays $1,000 at the end of each of the next 5 yrs if the interest rate is 15%. Then the FV of that same annuity.

G. How would the PV and FV of the annuity change if it were an annuity due rather than an ordinary anniuty?

H. What would the FV and the PV for parts a and c be if the interest rate were 10% with semiannual compounding rather than 10% with annual compounding?

I. Find PV and the FV of an investment that makes the following end of year payments. The interest rate is 8%.

YearPayment

1$100

2200

3 400

J. Suppose you bought a house and took out a mortgage for P,000. The interest rate is 8%, and you must amortize the loan over 10 yrs with equal end of year payments. Set up an amortization schedule that shows the annual payments and the amount of each payment that goes to pay off the principal and the amount that constitutes interest expense to the borrower and interest income to the lender.

1- Create a graph that shows how the payments are divided between interest and principal repayment over time.

2- suppose the loan called for 10 yrs of monthly payments, with the same original amount and the same nominal interest rate. What would the amortization schedule show now?