$

$\%$

years

f$.$ Find the PV of an ordinary annuity that pays $$1,000$ each of the next $5$ years if the interest rate is $12\%.$ Then find the FV of that same annuity. Round your answers to the nearest cent.

PV of ordinary annuity: $

FV of ordinary annuity: $

g$.$ How will the PV and FV of the annuity in part $f$ change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent.

PV of annuity due: $

FV of annuity due: $

h$.$ What will the FV and the PV for parts a and c be if the interest rate is $8\%$ with semiannual compounding rather than $8\%$ with annual compounding? Round your answers to the nearest cent.

FV with semiannual compounding: $

PV with semiannual compounding: $

i$.$ Find the annual payments for an ordinary annuity and an annuity due for $10$ years with a PV of $$1,000$ and an interest rate of $7\%.$ Round your answers to the nearest cent.

Annual payment for ordinary annuity: :

Annual payment for annuity due: $

j$.$ Find the PV and the FV of an investment that makes the following end$-$of$-$year payments. The interest rate is $7\%.$

Round your answers to the nearest cent.

PV of investment: $

FV of investment: $

k$.$ Five banks offer nominal rates of $5\%$ on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. Assume $365$ days in a year.

If the TVM is the only consideration, what nominal rate will cause all of the banks to provide the same effective annual rate as Bank A$?$ Round your answers to two decimal places.

the payments be to each bank? Round your answers to the nearest cent.

Even if the five banks provided the same effective annual rate, would a rational investor be indifferent between the banks?

It is more likely that an investor would prefer the bank that compounded