c. Find the PV of $1,000 due in 5 years if the discount rate is 10%. Round your answer to the nearest cent, d. A security has a cost of $1,000 and will return $4,000 after 5 years, What rate of return does the security provide? Round your answer to two decimat placen. e. Suppose Califomia's population is 37.7 million people, and its population is expected to grow by 2% annually. How long will it take for the populabon to double? Round your answer to the neerest whole number. years 1. Find the PV of an ordinary annuity that pays $1,000 each of the next. 5 years if the internst rate is iswe. Then find the fV of that same annacy. Raund your answers to the nearest cent. PV of ordinary annuity: $ FV of ordinary annuity: $, 0. How will the PY and FV of the annuity in part f change it it is an annusy due rather than an ordinary annuity? Round your answeis to the nearest cent. PV of annuity dues $ FV of annuity dues $ answers to the nearest cent. 1. What will the FV and the PV for parts a and c be if the interest rate is 10% with semiannual compounding rather than 10% with annual compounding? Round your answers to the nearest cent. FV with semiannual compounding: $ PV with semiannual compounding: $ 1. Find the annual payments for an ordinary annuity and an annuity due for 10 years with a PV of $1,000 and an interest rate of 9%. Round your answens to the neareit cent. Annual payment for ordinary annuity: $ Annual payment for annuity due: $ 3. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 9%. Round your answers to the nearest cent. PV of investment: 5 PV of investment: 5 days in a yeac 6. Five banks offer nominal rates of 8 s. on deposats, but A pays interest annually, B pays semianinually, C pays quarterly, D pays monithly, and E pays daily, Assumen 365 . days in a year. 1. What effective annual rate does each bank pay? If you deposit 55,500 in each bank todoy, how much will you have in each bank at the end of 1 yeat? 2 years? Round your answers to two decimal places. 2. If the TVM is the only consideration, what nominal rate will cause all of the banks to provide the same effective annual rate as Benk A? Round your arswers to two decimal placess: 3. Suppose you don't have the $5,500 but need it at the enid of 1 yeac You plan to make a senes of degosits - annually for A, semiannually for B, quarterhy for C, monthly for D, and daily for E - with payments beginning today. How large must the payments be to each bank? Round your answers to the nearest cent. 4. Even if the five banks provided the sadse effective annual rate, would a rational investor be indifferent between the bankss? It is more lakely that an investor would prefer the bank that compounded frequently. d, Even if the five banks pravided the same effective annuat rate, would a ratoonel investor be indiferent between the borks? It is more lkely that an impestor would prefer the bank that compounded frequently I. Suppose you borrow $14,000. The interest rate is 9%, and it requires 4 equal end-of year payments. Set up an amortuabon scheifule that shoins the arinul payments, interest payments, principal regayments, atid beginning and ending loan balances. Round yout answers to the neorest eent. If your arswer is zero, enter "0\%. Chome the correc crach that shows how the payments are divided between intereat and prinopsl repayment over time. The correct oraph is
