1. Assume that you borrow $5,000 from a friend and intend to pay the amount in five equal annual installments beginning one year from today. Your friend wishes to be reimbursed for the time value of money at an 5% annual rate. What is the required annual payment that must be made (the annuity amount), to repay the loan in four years?(PMT)
2. Assume that you borrow $10,000 from a friend and intend to pay the amount in equal annual installments of $1000 beginning one year from today. Your friend wishes to be reimbursed for the time value of money at a 7% annual rate. How many years would it take before you repaid the loan? NPER
3. Suppose that a friend asked to borrow $900 today (present value) and promised to repay you $100 (the annuity amount) at the end of each of the next ten years. What is the annual interest rate implicit in this agreement? RATE
4. Suppose you borrowed $350,000 @ 6% from the bank on a thirty year mortgage. You are to make monthly payments. What are the required monthly payments? PMT 10. Suppose you issued a 5 year, 8% interest to be paid semi-annually, $1000 face bond when the yield (market) is 5%.At what price will your bond issue? Add together both PV