1. Future Value. What is the future value of Answers a. $572 invested for 5 years at 15 percent compounded annually? b.

$449 invested for 15 years at 14 percent compounded annually? c. $270 invested for 7 years at 6 percent compounded annually? d. $1177 invested for 3 years at 13 percent compounded annually? 2. Present Value. What is the present value of a. $592 to be received 8 years from now at a 14 percent discount rate? b. $1167 to be received 7 years from now at a 12 percent discount rate? c. $1155 to be received 12 years from now at a 14 percent discount rate? d. $784 to be received 14 years from now at a 5 percent discount rate? 3. Future Value of an Annuity. What is the future value of a. $1176 a year for 13 years at 13 percent compounded annually? b. $663 a year for 10 years at 13 percent compounded annually? c. $360 a year for 8 years at 7 percent compounded annually? d. $338 a year for 11 years at 14 percent compounded annually? 4. Present Value of an Annuity. What is the present value of a. $387 a year for 5 years at a 9 percent discount rate? b. $798 a year for 13 years at a 11 percent discount rate? c. $754 a year for 11 years at a 11 percent discount rate? d. $550 a year for 8 years at a 11 percent discount rate? 5. How many years will it take to grow a. $974 to a value of 4,531.43 at a compound rate of 15 percent ? b. $371 to a value of 986.28 at a compound rate of 13 percent ? c. $841 to a value of 2,578.34 at a compound rate of 9 percent ? d. $421 to a value of 1,369.07 at a compound rate of 14 percent ? 6. Interest Rate. At what interest rate will it take to grow a. $374 to a value of 1,051.94 over 12 years? b. $640 to a value of 1,817.23 over 10 years? c. $372 to a value of 1,623.22 over 13 years? d. $527 to a value of 2,451.81 over 11 years? 7. Annuity. How many years will it take for a payment of a. $687 to grow to 9,090.91 at a compound rate of 14 percent? b. $800 from a future value of 10,586.21 at a compound rate of 14 percent? c. $536 from a future value of 8,621.75 at a compound rate of 14 percent? d. $231 from a future value of 1,496.94 at a compound rate of 13 percent? 8. Annuity. At what interest rate will a payment of a. $683 grow to 6,890.80 over a period of 7 years? b. $558 grow to 15,610.04 over a period of 14 years? c. $802 grow to 8,530.58 over a period of 8 years?

d. $721 grow to 6,884.91 over a period of 8 years? 9. Car Loans (Hint: P/Y12) How much is a car loan with a payment of a. $164 per month for 4 years at 4% interest per year? b. $530 per month for 2 years at 7% interest per year? c. $102 per month for 4 years at 5% interest per year? d. $367 per month for 3 years at 13% interest per year? 10. Car Loans. (Hint: P/Y12) How many months will you pay on a car loan of a. $14108 with a payment of 335.63 per month at 15% interest per year? b. $49544 with a payment of 1,378.85 per month at 15% interest per year? c. $10029 with a payment of 318.92 per month at 9% interest per year? d. $39241 with a payment of 1,721.56 per month at 5% interest per year? 11. Car Loans. (Hint: P/Y12) What is the interest rate on a loan of a. $8000 with a payment of 191.57 per month for 4 years? b. $16000 with a payment of 421.34 per month for 4 years? c. $24000 with a payment of 509.93 per month for 5 years? d. $32000 with a payment of 603.88 per month for 5 years? 12. Mortgages.(Hint: P/Y12, House Loan Amount/ (1 Down Payment %) What is the house cost on a 10 percent down mortgage with payments of a. $3,594.47 per month for 30 years at 4% interest? b. $8,105.55 per month for 15 years at 9% interest? c. $6,604.88 per month for 30 years at 15% interest? d. $9,128.23 per month for 15 years at 11% interest? 13. Mortgages. (Hint: P/Y12) What is the interest rate on a mortgage of a. $675439 with a payment of 3,625.90 for 30 years? b. $181181 with a payment of 2,292.38 for 15 years? c. $631658 with a payment of 5,543.25 for 30 years? d. $480403 with a payment of 5,162.44 for 15 years? 14. Mortgage. (Hint: P/Y12) What is the payoff on a 30 year, 6% original mortgage of a. $624552 with a payment of 3,744.50 with 12 years remaining? b. $190788 with a payment of 1,143.87 with 15 years remaining? c. $337857 with a payment of 2,025.62 with 11 years remaining? d. $713472 with a payment of 4,277.63 with 7 years remaining?

5-1A. (Compound interest) To what amount will the following investments accumulate? a. $5,000 invested for 10 years at 10 percent compounded annually b. $8,000 invested for 7 years at 8 percent compounded annually c. $775 invested for 12 years at 12 percent compounded annually

d. $21,000 invested for 5 years at 5 percent compounded annually 5-4A. (Present value) What is the present value of the following future amounts? a. $800 to be received 10 years from now discounted back to the present at 10 percent b. $300 to be received 5 years from now discounted back to the present at 5 percent c. $1,000 to be received 8 years from now discounted back to the present at 3 percent d. $1,000 to be received 8 years from now discounted back to the present at 20 percent 5-5A. (Compound annuity) What is the accumulated sum of each of the following streams of payments? a. $500 a year for 10 years compounded annually at 5 percent b. $100 a year for 5 years compounded annually at 10 percent c. $35 a year for 7 years compounded annually at 7 percent d. $25 a year for 3 years compounded annually at 2 percent 5-6A. (Present value of an annuity) What is the present value of the following annuities? a. $2,500 a year for 10 years discounted back to the present at 7 percent b. $70 a year for 3 years discounted back to the present at 3 percent c. $280 a year for 7 years discounted back to the present at 6 percent d. $500 a year for 10 years discounted back to the present at 10 percent A1. (Present and future values) a. What is the future value of $2,000 invested today if it earns 20% interest for one year? for two years? b. What is the present value of $2,000 discounted at 20% if it is received in one year? in two years?