# 1. What’s the present value of a $600 annuity payment over five years if interes

1. What’s the present value of a $600 annuity payment over five years if interest rates are 9 percent? ( Do not round intermediate calculations and round your final answer to 2 decimal places.)

2. What is the future value of $650 deposited for one year earning an interest rate of 8 percent per year? ( Do not round intermediate calculations. Enter your answer as a whole.)

3. Compute the future value in year 7 of a $4,600 deposit in year 1, and another $4,100 deposit at the end of year 4 using an 8 percent interest rate. ( Do not round intermediate calculations and round your final answers to 2 decimal places.)

4. Compute the present value of a $5,100 deposit in year 3, and another $4,600 deposit at the end of year 6 using an 9 percent interest rate. ( Do not round intermediate calculations and round your final answer to 2 decimal places)

5. If the present value of an ordinary, 6 years annuity is $5,600 and interest rates are 7.5 percent, what’s the present value of the same annuity due? ( Round your answer to 2 decimal places.)

6. Compute the present value of $1,150 paid in the three years using the following discount rates: 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year. ( Do not round intermediate calculations. Round your answer to 2 decimal places.)

7. What is the present value of a $2,000 payment made in five years when the discount rate is 9 percent? ( Do not round intermediate calculations. Round your answer to 2 decimal places.)

8. ( Must be done on Excel Sheet) A loan is offered with monthly payments and a 9.00 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate and round your final answer to 2 decimal places.)

Payments per year 12

APR 9.00%

Complete the following analysis. Do not hard code values in your calculations.

EAR

9. ( Must be done on Excel Sheet) Compute the percent value of $ 4,800 paid in two years using the following discount rates: 8 percent in the first year and 7 percent in the second year. ( Do not round intermediate calculations and round your answer to 2 decimal places.

Future value $ 4,800

Number of years 2

Interest rate first year 8.00%

Interest rate second year 7.00%

Complete the following analysis. Do not hard code values in your calculations.

Value two years from today

Value one year from today

Present value