Suppose you are going to recelve $13,500 per year for five years. The approprate interest rate is 6.8%. Q.1 What is the present value of the payments if they are in the form of an ordinary annuity? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) 0.2 What is the present value if the payments are an annuify due? (Do not round intermediote calculations and round your final onswer to 2 decimal places. (e.g., 3216)) b-1 Suppose you plan to invest the payments for five years. What is the future value if the payments are an ordinary annuity? (Do not round intermediate colculations and round your final answer to 2 decimal places. (e.g., 32.16)) b-2 Suppose you plan to invest the payments for five years. What is the future value if the payments are an annuity due? (Do not round intermediate colculations and round your final answer to 2 decimal places. (e,9.,32.16) ) You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street sweeper accident. In the trial, doctors testified that it will be five years before the plaintiff is able to return to work. The jury has already decided in favor of the plaintiff You are the foreperson of the jury and propose that the jury give the plaintiff an award to cover the following: (a) The present value of two years' back pay. The plaintiff's annual salary for the last two years would have been $41,000 and $44,000, respectively. (b) The present value of five years' future salary. You assume the salary will be $48,000 per year. (c) $100,000 for pain and suffering. (d) $20,000 for court costs Assume that the salary payments are equal amounts paid at the end of each month. If the interest rate you choose is an 8% EAR, what is the size of the settlement? (Do not round intermediate calculotions. Round the finol onswer to 2 decimal places. Omit $ sign in your response.) Size of the settlement Hyou were the plaintif, would you like to see a higher or lower interest rate? Higher interest rate Lower interest rate Prepare an amortization schedule for a five-year loan of $34,000. The interest rate is 8% per year, and the loan calls for equal annual payments. (Do not round intermediate calculations. Enter all amount as positive value. Round the final answers to 2 decimal places. Leave no cells blank - be certain to enter " 0 " wherever required.) How much interest is paid in the third year? (Do not round intermediate colculations. Round the final answer to 2 decimal places.) Interest paid How much total interest is paid over the life of the loan? (Do not round intermediate colculations. Round the final answer to 2 decimal ploces.) Total interest $
