Find the FV of $$1,000$ invested to earn $10\%$ after $4$ years. Round your answer to the nearest cent.

$ fill in the blank $2$

b$.$ What is the investment's FV at rates of $0\%,4\%,$ and $30\%$ after $0,1,2,3,4,$ and $5$ years? Round your answers to the nearest cent.

Year Interest Rate

$0\%4\%30\%$

$0$ $ fill in the blank $3$

$ fill in the blank $4$

$ fill in the blank $5$

$1$ $ fill in the blank $6$

$ fill in the blank $7$

$ fill in the blank $8$

$2$ $ fill in the blank $9$

$ fill in the blank $10$

$ fill in the blank $11$

$3$ $ fill in the blank $12$

$ fill in the blank $13$

$ fill in the blank $14$

$4$ $ fill in the blank $15$

$ fill in the blank $16$

$ fill in the blank $17$

$5$ $ fill in the blank $18$

$ fill in the blank $19$

$ fill in the blank $20$

Choose the correct graph of future value as a function of time and rate. Note: blue line is for $0\%,$ orange line is for $4\%,$ and grey line is for $30\%.$

The correct graph is

$.$

A$.$

B$.$

C$.$

D$.$

c$.$ Find the PV of $$1,000$ due in $4$ years if the discount rate is $10\%.$ Round your answer to the nearest cent.

$ fill in the blank $22$

d$.$ A security has a cost of $$1,000$ and will return $$3,000$ after $4$ years. What rate of return does the security provide? Round your answer to two decimal places.

fill in the blank $23$

$\%$

e$.$ Suppose California's population is $35\mathrm{.}4$ million people, and its population is expected to grow by $3\%$ annually. How long will it take for the population to double? Round your answer to the nearest whole number.

fill in the blank $24$

years

f$.$ Find the PV of an ordinary annuity that pays $$1,000$ each of the next $4$ years if the interest rate is $14\%.$ Then find the FV of that same annuity. Round your answers to the nearest cent.

PV of ordinary annuity: $ fill in the blank $25$

FV of ordinary annuity: $ fill in the blank $26$

g$.$ How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent.

PV of annuity due: $ fill in the blank $27$

FV of annuity due: $ fill in the blank $28$

h$.$ 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: $ fill in the blank $29$

PV with semiannual compounding: $ fill in the blank $30$

i$.$ Find the annual payments for an ordinary annuity and an annuity due for $8$ years with a PV of $$1,000$ and an interest rate of $9\%.$ Round your answers to the nearest cent.

Annual payment for ordinary annuity: $ fill in the blank $31$

Annual payment for annuity due: $ fill in the blank $32$

j$.$ Find the PV and the FV of an investment that makes the following end$-$of$-$year payments. The interest rate is $9\%.$

Year Payment

$1$ $$100$

$2$ $$200$

$3$ $$400$

Round your answers to the nearest cent.

PV of investment: $ fill in the blank $33$

FV of investment: $ fill in the blank $34$

k$.$ Five banks offer nominal rates of $8\%$ on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. Assume $365$ days in a year.

What effective annual rate does each bank pay? If you deposit $$3,000$ in each bank today, how much will you have in each bank at the end of $1$ year? $2$ years? Round your answers to two decimal places.

A B C D E

EAR fill in the blank $35$

$\%$ fill in the blank $36$

$\%$ fill in the blank $37$

$\%$ fill in the blank $38$

$\%$ fill in the blank $39$

$\%$

FV after $1$ year $ fill in the blank $40$

$ fill in the blank $41$

$ fill in the blank $42$

$ fill in the blank $43$

$ fill in the blank $44$

FV after $2$ years $ fill in the blank $45$

$ fill in the blank $46$

$ fill in the blank $47$

$ fill in the blank $48$

$ fill in the blank $49$

If the TVM is the only consideration, what nominal rate will cause all of the banks to provide the same effective annual rate as Bank A$?$ Round your answers to two decimal places.

B C D E

Nominal rate fill in the blank $50$

$\%$ fill in the blank $51$

$\%$ fill in the blank $52$

$\%$ fill in the blank $53$

$\%$

Suppose you don't have the $$3,000$ but need it at the end of $1$ year. You plan to make a series of deposits $$ annually for A$,$ semiannually for B$,$ quarterly 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.

A B C D E

Payment $ fill in the blank $54$

$ fill in the blank $55$

$ fill in the blank $56$

$ fill in the blank $57$

$ fill in the blank $58$

Even if the five banks provided the same effective annual rate, would a rational investor be indifferent between the banks?

It is more likely that an investor would prefer the bank that compounded

frequently.

l$.$ Suppose you borrow $$15,000.$ The interest rate is $9\%,$ and it requires $4$ equal end$-$of$-$year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances.