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ed to 1. What is the future value of a 3-year sloo ordinary annuity th winu l in cre rai is 2, What it prosent

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ed to 1. What is the future value of a 3-year sloo ordinary annuity th winu l in cre rai is 2, What it prosent valu 3. What would the future and present values be if it was an annuity due g A 5-year $100 ordinary annuity has an annual interest rate of l 1. What is its present value? 2. What would the present value be i it was a 10year annuity 3. What would the present value be if it was a 25-year annuih! 4, What would the present value be if this was a perpetuity? h. A 20 year-old student wants to save s5aday for her retirement. Ewery day she places ss in a drawer. At the end of each year, she invests the accumulated savings (s1s25) in a brokerage account with an expected annual return a l. if she keeps saving in this manner, how much will she have accumulated at age 65? 2. If a 40-year-old investor began saving in this manner, how much would he have at age 65? 3. How much would the 40-year-old investor have to save each year to accumulate the same amount at 65 as the 20year-old investor? i. What is the present value of the following uneven cash flow stream? The annual interest rate is 4%. $100 1. Will the future value be larger or smaller if we compound an initial amount more often than annually (eg semiannually, holding the stated (nominal) rate constant)? Why? 2. Define (a) the stated (or quoted or nominal rate, (b) the periodic rate, and (c the effective annual rate oEAR 3, What is the EAR corresponding to a nominal rate of 4% compounded semiannual Compounded quarterly? Compounded daily? 4. What is the future value of $100 after 3 years under 4% semiannual compounding? Quarterly compounding

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