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Assume you deposited $1,000 in a bank that offered 10% annual interest rate. If you kept your money for 5 years how much money you

Assume you deposited $1,000 in a bank that offered 10% annual interest rate. If you kept your money for 5 years how much money you would have in the 5th year?



2) You are expecting to receive $1,000, five years from now. How much this future cash flaw is worth todayif the interest rate is 10%?



3) You have $1, 000 today and you want to grow them to $2,000 in three years, How much interest rate you should get to achieve your goal?




4) How long you need to wait to make $3,000 grow to $6,000 if you can earn 10% on your money?






5) If you expect to receive $100 in one year from now, $200 two years from now, and $150 three years from now, How much this cash flow is worth today if the interest rate is 10%





6) I f you deposit in a bank $200 today, $250 a year from now, $150 in the second year and $300 in the third year, How much you find in your bank account in the 3rd year if the interest rate is 10%?





7) If you are expecting a settlement of $10,000 at the end of each year for five years, How much this annuity is worth today if the interest rate is 8% ?





8) In the previous question if you expect o receive the payment at the beginning of the year instead of the end of they year, how much the payments are worth now?





9)As part of you financial planning and to supplement your retirement, you decided to save $3,000 at the end of each year for 30 years, how much money you will have in your account if you can earn 10% ?




10) Referring to question number 9, Assume that you deposited the money at the beginning of the year, how much money you would find in your account in the 30 years?




11) if a financial planner promised to pay you $100,000 a year for ever. What is the maximum amount of money you would pay him today if the interest rate in the market is 5%?




12) Assume that you deposited $100,000 in a bonk that offered 10% annual interest rate. How much would be your annual annuity if you are planning to keep the money on the bank forever? Use the perpetuity formula



13) You want to buy a car for $25,000 that has to be paid in Five years. If the car dealer agrees to finance your car at 8%, What would be you annual payment for the car?




14) A bank quoted 10% annual interest rate. If the banked compounds the interest rate quarterly, what would be the effective annual rate (EAR)?





15) If you deposited $5,000 in a bank that offers12% annual interest rate. If the bank compounds the interest rate monthly and you want to keep your money for 5 years, how much money you will find in your account in the fifth year?

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