5-5 present value compute the present value of a $2,000 deposit in


 

 

Problems

BASIC PROBLEMS

Complete the aftercited tenor sets from Chapter 5 in Microsoft® Excel®:

·        5-1

·        5-3

·        5-5

·        5-7

·        5-12

·        5-15

·        5-39 (Calculate monthly cancelment singly)

 

5-1   Future Esteem Compute the forthcoming esteem in year 9 of a $2,000 pledge in year 1 and another $1,500 pledge at the end of year 3 using a 10 percent attention rebuke. (LG5-1)

 

5-3   Future Esteem of an Annuity What is the forthcoming esteem of a $900 annuity cancelment balance five years if attention rebukes are 8 percent? (LG5-2)

 

5-5   Present Esteem Compute the introduce esteem of a $2,000 pledge in year 1 and another $1,500 pledge at the end of year 3 if attention rebukes are 10 percent. (LG5-3)

 

5-7   Present Esteem of an Annuity What’s the introduce esteem of a $900 annuity cancelment balance five years if attention rebukes are 8 percent? (LG5-4)

 

5-12   Present Esteem of an Annuity Due If the introduce esteem of an matter-of-fact, 6-year annuity is $8,500 and attention rebukes are 9.5 percent, what’s the introduce esteem of the corresponding annuity due? (LG5-6)

 

5-15   Effective Annual Rebuke A mortgage is offered after a while monthly cancelments and a 10 percent APR. What’s the mortgage’s efficient annual rebuke (EAR)? (LG5-7)

 

5-39   Loan Payments You effort to buy a $25,000 car. The trader offers you a 4-year mortgage after a while a 9 percent APR. What are the monthly cancelments? How would the cancelment be-unlike if you paid attention singly? What would the consequences of such a conclusion be? (LG5-9)