Assignment
1. Future Value. What is the future value of
a. $550 invested for 5 years at 15 percent compounded annually?
b. $650 invested for 15 years at 14 percent compounded annually?
2. Present Value. What is the present value of
a. $453 to be received 8 years from now at a 14 percent discount rate?
b. $1200 to be received 7 years from now at a 12 percent discount rate?
3. Future Value of an Annuity. What is the future value of
a. $1321 a year for 13 years at 13 percent compounded annually?
b. $867 a year for 10 years at 13 percent compounded annually?
4. Present Value of an Annuity. What is the present value of
a. $487 a year for 5 years at a 9 percent discount rate?
b. $798 a year for 13 years at a 11 percent discount rate?
5. Annuity. How many years will it take for a payment of
a. $590 to grow to 9090.91 at a compound rate of 14 percent?
b. $900 to grow to future value of 10,586.21 at a compound rate of 14 percent?
6. Mortgage. (Hint: P/Y=12) What is the payoff on a 30 year, 7% original mortgage of
a. $550,552 with a payment of 3,744.50 with 12 years remaining?
b. $190788 with a payment of 1,143.87 with 15 years remaining?
7. Stock. What is the required rate of return on a stock with a
a. $0.75 expected dividend and a 34 price with 7% growth?
b. $1.25 expected dividend and a 15 price with 8% growth?