Question 1

Effective Annual Rate A loan is offered with monthly payments and a 6.75 percent APR. What's the loan's effective annual rate (EAR)?

Question 2

Future Value of an Annuity Due If the future value of an ordinary, 7-year annuity is $6,600 and interest rates are 6 percent, what's the future value of the same annuity due?

Question 3

Present Value of a Perpetuity What's the present value, when interest rates are 6.50 percent, of a $100 payment made every year forever?

Question 4

Present Value of an Annuity What is the present value of a $1,900 annuity payment over 5 years if interest rates are 9 percent?

Question 5

Future Value of an Annuity What is the future value of a $1,000 annuity payment over 8 years if the interest rates are 10 percent?

Question 6

Future Value Compute the future value in year 9 of a $440 deposit in year 4 and another $240 deposit at the end of year 5 using a 9% interest rate.