he future value in two years of $5,000 deposited today in a savings account with interest compounded annually at 4%.

$Answer

(b) The present value of $15,000 to be received in four years, discounted at 10%.

$Answer

(c) The present value of an annuity of $2,500 per year for five years discounted at 12%.

$Answer

(d) An initial investment of $69,845 is to be returned in eight equal annual payments. Determine the amount of each payment if the interest rate is 8%.

$Answer

(e) A proposed investment will provide cash flows of $20,000, $25,000, and $30,000 at the end of Years 1, 2, and 3, respectively. Using a discount rate of 6%, determine the present value of these cash flows.

Year 1Answer

Year 2Answer

Year 3Answer

(f) Find the present value of an investment that will pay $3,000 at the end of Years 10, 11, and 12. Use a discount rate of 8%.

$Answer