Answer these problems and show your work:
Question 1. Calculate the present value of the following lump sums:
a. $100,000 to be received five years from now with a 5% annual interest rate
b. $200,000 to be received 10 years from now with a 10% annual interest rate
Question 2. Calculate the future value of the following lump sums:
a. $100,000 if invested for five years at a 5% annual interest rate
b. $200,000 if invested for 10 years at a 10% annual interest rate
Question 3. Calculate the present value of these ordinary annuities:
a. $100,000 to be received each year for five years with a 5% annual interest rate
b. $200,000 to be received each year for 10 years with a 10% annual interest rate
Question 4. Calculate the future value of these ordinary annuities:
a. $100,000 if invested each year for five years at a 5% annual interest rate
b. $200,000 if invested each year for 10 years at a 10% annual interest rate
Question 5. Calculate the present value of these perpetuities:
a. $100,000 to be received each year forever with a 5% annual interest rate
b. $200,000 to be received each year forever with a 10% annual interest rate