Assignment
a. What's the present value of a $600 annuity payment over five years if interest rates are 9 percent?
b. What is the future value of $650 deposited for one year earning an interest rate of 8 percent per year?
c. 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.
d. 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.
e. 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?
f. 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.
g. What is the present value of a $2,000 payment made in five years when the discount rate is 9 percent?
h. (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)?
Payments per year 12
APR 9.00%
Complete the following analysis. Do not hard code values in your calculations.
EAR
i. (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.
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
Format your assignment according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.