Problem 4-10 Continuous Compounding

a. Compute the future value of $1,900 continuously compounded for 7 years at an annual percentage rate of 10 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ b. Compute the future value of $1,900 continuously compounded for 5 years at an annual percentage rate of 8 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ c. Compute the future value of $1,900 continuously compounded for 10 years at an annual percentage rate of 7 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ d. Compute the future value of $1,900 continuously compounded for 8 years at an annual percentage rate of 9 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $

Problem 4-11 Present Value and Multiple Cash Flows

Machine Co. has identified an investment project with the following cash flows.

Year	Cash Flow
1	$	730
2		950
3		1,210
4		1,300

If the discount rate is 8 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ If the discount rate is 18 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ If the discount rate is 24 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $

Problem 4-15 Calculating EAR

Find the EAR in each of the following cases: (Assume 365 days in a year. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Stated Rate (APR)				Number of Times Compounded				Effective Rate (EAR)
	8	%			Quarterly				%
	17				Monthly
	13				Daily
	10				Infinite
Problem 4-21 Future Value a. What is the future value in six years of $1,200 invested in an account with an annual percentage rate of 9 percent, compounded annually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ b. What is the future value in six years of $1,200 invested in an account with an annual percentage rate of 9 percent, compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ c. What is the future value in six years of $1,200 invested in an account with an annual percentage rate of 9 percent, compounded monthly? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ d. What is the future value in six years of $1,200 invested in an account with an annual percentage rate of 9 percent, compounded continuously? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ Problem 4-34 Growing Annuity Your job pays you only once a year, for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $59,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.9 percent per year. Your salary will increase at 2 percent per year throughout your career. How much money will you have on the date of your retirement 35 years from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $