1- Compute the future value of a $100, 3-year ordinary annuity compounded at 5%?
2- If you deposit $100 at the end of each year for 3 years in a savings account that pays 10% interest per year, how much will you have at the end of three years?
3- What is the future value of a 5-year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate?
4- If you deposit $100 at the beginning of each year for 3 years in a savings account that pays 10% interest per year, how much will you have at the end three years?
5- What is the present value of an annuity that will pay $100 for three years if the required interest rate is 10%?
6- What is the present value of a 5-year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate?
7- You just won the $30 million state lottery. You have the option to receive the jackpot in either one lump sum of $15 million or in 30 annual payments of $1 million each. Which option should you choose if the appropriate discount rate 6%?
8- What is the present value of an annuity that will pay $100 for three years if the required interest rate is 10%? The payments will be made at the beginning of the year Finding Annuity Pavments, PMT
9- We need to accumulate $10,000 and have it available 5 years from now. We can earn 6% on our money. Calculate the required annual deposit.
10- You wish to accumulate $250,000 in 15 years to pay for a year of travel. What equal amount do you need to save each year to achieve your objective if you can earn 7 percent per year on your investment"?