Answer the following questions:

a. Assuming an APR of 10%, find the FV of $1,000 after 5 years, compounded

a1. annually

a2. monthly.

b. Find the PV of $1,000 due in 5 years if the discount rate is 10%, discounted

b1. annually

b2. semi-annually.

c. What is the rate of return on a security that costs $1,000 and returns $2,000 after 5 years?

d. Find the PV of an ordinary annuity that pays $1,000 each of the next 5 years if the interest rate is 15%. What is the annuitys FV?

e. Find the PV and the FV of an investment that makes the following end-of-year payments, if the interest rate is 8% annually:

0 1 2 3

I--------I---------I---------I

0 $100 $200 $400

f. Suppose you borrow $30,000 for 3 years. The loans annual interest rate is 8%, and it requires 36 equal end-of-month payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances.