Present value

1. What is the present value of a security that will pay $27,000 in 20 years if securities of equal risk pay 7% annually? Round your answer to the nearest cent.

$ ____

Time to reach a financial goal

2. You have $18,390.42 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $240,000. You expect to earn 13% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations. ______ years

3. Future value: annuity versus annuity due

1. What's the future value of a 5%, 5-year ordinary annuity that pays $200 each year? Round your answer to the nearest cent. $ ____

2. If this was an annuity due, what would its future value be? Round your answer to the nearest cent. $ ___