Keel is planning to do a parachute jump for his 70th birthday party. He's now 60. He wants to know how much he should set aside now, that would accumulate the necessary $5,000 in five years. He will assume a 5% interest rate. To determine the amount to set aside now, he needs to solve for: Future value of an ordinary annuity of $5,000. If he needs more life insurance. The future value of the $5,000 five years in the future. The present value of the $5,000 five years in the future. Jim is trying to decide whether to lease a tractor for payments of $6,000 at the end of each year for five years (at which point the title to the tractor will transfer to him) or buy the tractor for $25,000. In order to make a good financial decision, he needs to determine: Present value of an ordinary annuity of $6,000. Future value of an annuity due of $6,000. Present value of an annuity due of $6,000. The present value of $25,000. In Jim's case above, and given that Jim will make a decision based on simply the time value of money, if the present value of the five $6,000 payments was $24,000, should he buy or lease the tractor? Circle the bolded correct answer. Why? A rent payment in which the first payment is due at the beginning of the lease, would be an ordinary annuity or an annuity due? Circle the correct term. A note payment in which the first payment is due one year after the note was signed and the money was borrowed, would be an ordinary annuity or an annuity' due? Circle the correct term. If the future value of an amount was constant (let's say $1,000) and the time between now and when the future value is measured is constant (let's say 5 years), then if the interest rate goes up (let's say from 5% to 10%), then the present value of the amount would go up or go down? Circle the correct response. Why