please answer these questions in the same style as the soreadsheets provided.

spreadsheet*

5-14 FUTURE VALUE OF AN ANNUITY Find the future values of these ordinary annuities. Com- pounding occurs once a year. a. $400 per year for 10 years at 10% b. $200 per year for 5 years at 5% 5-19 FUTURE VALUE OF AN ANNUITY Your client is 40 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $5,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 9% in the future. a. If she follows your advice, how much money will she have at 65? b. How much will she have at 70? 5-25 FUTURE VALUE OF AN ANNUITY Find the future values of the following ordinary annuities: a. FV of $400 paid each 6 months for 5 years at a nominal rate of 12% compounded semiannually b. FV of $200 paid each 3 months for 5 years at a nominal rate of 12% compounded quarterly c. These annuities receive the same amount of cash during the 5-year period and earn interest at the same nominal rate, yet the annuity in part b ends up larger than the one in part a. Why does this occur? 5-15 PRESENT VALUE OF AN ANNUITY Find the present values of these ordinary annuities Discounting occurs once a year. $400 per year for 10 years at 10% b. $200 per year for 5 years at 5% a. Table 5.1 If you deposit $100 in a bank account that pays 3% interest annually, how muh will be in your account after 3 years? PV Rate Nper PMT FV ($100.00) 5% 3 $115.76 Tale 5.2 What is the present value of $115.76 to be received aftr 3 years? if the annual interest rate is 5%? PV Rate Nper PMT FV ($100.00) 5% 3 $115.76 Table 5.3 Ordinary annuities You depoit $100 at the end of each year for 3 years and earn 5% per year. How much will you have at the end of the third year? PMT -$100.00 5% 3 Rate Nper PV FV You deposit $100 each year at the end of the year and earn 5% interest. What is the PV of this annuity? PMT ($100.00) 5% 3 Rate Nper PV FV TUTA TA Y (11 PMT Rate Nper PV FV ($100.00) 5% 3 Annuity due: FVA due = FVA ordinary X (1+1) You deposit $100 at the beginning of each year for 3 years and earn 5% interest. How much will you have at the end of the third year? PMT Rate Nper PV FV Non-annual annuities You are going to deposit $200 per month into an investment fund at end of each month for 3 years. The fund promises a 6% annual rate of return. Your first deposit will begin one month from now. How much will you have in the account at end of the third year? PMT Rate Nper PV FV You plan to buy a car with a auto loan of $20,000. The annual interest on the loan is 4%, and the loan will be paid off with monthly installment for 5 years, and the payments will be made at end of each period. How much is the monthly payment? PMT Rate Nper PV FV Perpetuities: A stream of equal payments at fixed intervals expected to continue forever. PV of a perpetuity = PMT/I (page 162)