Please answer the following questions.

1. Solar-light Inc. is considering a project with the following cash flows: YEAR Cash Flow 1 $800 2 $700 3 $600 4 $500 Calculate the future value of these cash flows (end of year 4), if the interest rate is 12%. a) b) What will be the future value if the interest rate is changed to 16%? 2. Mr. Hobbit deposits $2,000 at the end of each year for the next 10 years at an interest rate of 12% per year. How much will he have accumulated at the end of 10 years? How much would he have accumulated if he deposited the amounts at the beginning of each year? 3. Find the present value of a perpetuity that pays $2,000 per year and the interest rate is 10% 4. Given the following data, calculate the effective annual rate (EAR) in each case Sated rate (Nominal APR) 10% 12% 8% Frequency of Compounding Monthly Quarterly Daily(use 365days) Effective rate (EAR) ? ? ? 5. Given the following data, calculate the stated (Nominal) annual rate (APR) in each case Frequency of Compounding Sated rate (Nominal APR) ? ? ? Effective rate (EAR) 12% 6% Monthly Quarterly Daily (use 365 days) 15%