Time value of moneya. Finding FVInvestment $($PV$)$$$1,000$Interest rate $($I$)8\%$Number of years $($N$)6$FormulaFuture value $($FV$)$#N$/$Ab$.$ Creating a table with FVs at various interest rates and time periods using Data TableFormulasYear $($B$6)$Interest Rate $($B$5)$Year $($B$6)$Interest Rate $($B$5)0\%4\%20\%$#N$/$A$0\%4\%20\%00$#N$/$A#N$/$A#N$/$A$11$#N$/$A#N$/$A#N$/$A$22$#N$/$A#N$/$A#N$/$A$33$#N$/$A#N$/$A#N$/$A$44$#N$/$A#N$/$A#N$/$A$55$#N$/$A#N$/$A#N$/$ACreating a graph with years on the horizontal axis and FV on the vertical axisc. Finding PVFuture value $($FV$)$$$1,000$Discount rate $($I$)8\%$Number of years $($N$)6$FormulasPresent value $($PV$)$#N$/$Ad$.$ Finding the rate of return provided by the securityCost of security $($PV$)$$$1,000$Future value of security $($FV$)$$$2,000$Number of years $($N$)6$Rate of return $($I$)$#N$/$Ae$.$ Calculating the number of years required to double the populationCurrent population in millions $($PV$)34\mathrm{.}5$Growth rate $($I$)4\%$Doubled population in millions $($FV$)$#N$/$ANumber of years required to double $($N$)$#N$/$Af$.$ Finding the PV and FV of an ordinary annuityAnnuity $($PMT$)$$$1,000$Interest rate $($I$)13\%$Number of years $($N$)6$Present value of ordinary annuity $($PV$)$#N$/$AFuture value of ordinary annuity $($FV$)$#N$/$Ag$.$ Recalculating the PV and FV for part f if the annuity is an annuity duePresent value of annuity due $($PV$)$#N$/$AFuture value of annuity due $($FV$)$#N$/$Ah$.$ Recalculating the PV and the FV for parts a and c if the interest rate is semiannually compoundedFuture value $($FV$)$#N$/$APresent value $($PV$)$#N$/$Ai$.$ Finding the annual payments for an ordinary annuity and an annuity duePresent value $($PV$)$$$1,000$Discount rate $($I$)6\%$Number of years $($N$)12$Annual payment for ordinary annuity $($PMT$1)$#N$/$AAnnual payment for annuity due $($PMT$2)$#N$/$Aj$.$ Finding the PV and the FV of an investment that makes the following end$-$of$-$year paymentsYearPayment$1$$$2002$$$4003$$$600$Interest rate $($I$)6\%$Present value of investment $($PV$)$#N$/$AFuture value of investment $($FV$)$#N$/$Ak$.$ Five banks offer the same nominal rate on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily.$(1)$ Calculating the effective annual rate for each bank and the future values of the deposit at the end of $1$ year and $2$ yearsNominal rate $($INOM$)4\%$Deposit $($PV$)$$$4,000$Number of days per year$365$FormulasABCDEABCDEEAREAR#N$/$A#N$/$A#N$/$A#N$/$A#N$/$AFV after $1$ yearFV after $1$ year#N$/$A#N$/$A#N$/$A#N$/$A#N$/$AFV after $2$ yearsFV after $2$ years#N$/$A#N$/$A#N$/$A#N$/$A#N$/$A$(2)$ Calculating the nominal rates that will cause all of the banks to provide the same effective annual rate as Bank ABCDEBCDENominal rate $($INOM$)$Nominal rate $($INOM$)$#N$/$A#N$/$A#N$/$A#N$/$A$(3)$ Calculating the amount of payment to be made annually for A$,$ semiannually for B$,$ quarterly for C$,$ monthly for D$,$ and daily for ENeeded amount $($FV$)$$$4,000$Number of years $($N$)1$ABCDEABCDEPayment $($PMT$)$Payment $($PMT$)$#N$/$A#N$/$A#N$/$A#N$/$A#N$/$Al$.$ Setting up the amortization scheduleOriginal amount of mortgage $($PV$)$$$14,000$Interest rate $($I$)6\%$Term to maturity, years $($N$)4$FormulaAnnual payment $($PMT$)$#N$/$AFormulasYearBeginning BalancePaymentInterestRepayment of PrincipalEnding BalanceYearBeginning BalancePaymentInterestRepayment of PrincipalEnding Balance$11$#N$/$A#N$/$A#N$/$A#N$/$A#N$/$A$22$#N$/$A#N$/$A#N$/$A#N$/$A#N$/$A$33$#N$/$A#N$/$A#N$/$A#N$/$A#N$/$A$44$#N$/$A#N$/$A#N$/$A#N$/$A#N$/$ACreating a graph that shows how the payments are divided between interest and principal repayment over time