| WEEK 3 HOMEWORK ASSIGNMENT- 240 |
| Problem 5-4: |
| FUTURE VALUE OF A SINGLE AMOUNT: |
| A | B | C | D | E | F |
| Present Value | 200.00 | 4,500.00 | 10,000.00 | 25,000.00 | 37,000.00 | 40,000.00 |
| Interest Rate Per Year | 5% | 8% | 9% | 10% | 11% | 12% |
| Number of Years | 20 | 7 | 10 | 12 | 5 | 9 |
| Future Value |
| Problem 5-11: |
| PRESENT VALUE OF A SINGLE AMOUNT: |
| A | B | C | D | E |
| Future Value | 7,000.00 | 28,000.00 | 10,000.00 | 150,000.00 | 45,000.00 |
| Interest Rate Per Year | 12% | 8% | 14% | 11% | 20% |
| Number of Years | 4 | 20 | 12 | 6 | 8 |
| Present Value |
| Problem 5-20: |
| 1. Annuity |
| PRESENT VALUE OF AN ANNUITY |
| A | B | C | D | E |
| Annuity Amount | 12,000 | 55,000 | 700 | 140,000 | 22,500 |
| Interest Rate Per Year | 7% | 12% | 20% | 5% | 10% |
| Number of Years | 3 | 15 | 9 | 7 | 5 |
| Present Value |
| PRESENT VALUE OF AN ANNUITY DUE |
| 2. Annuity due |
| PRESENT VALUE OF AN ANNUITY DUE |
| A | B | C | D | E |
| Annuity Amount | 12,000 | 55,000 | 700 | 140,000 | 22,500 |
| Interest Rate Per Year | 7% | 12% | 20% | 5% | 10% |
| Number of Years | 3 | 15 | 9 | 7 | 5 |
| Present Value |
| Problem 5-22: |
| Part a. and b. |
| a | b |
| Annual payment | 2,000 | 2,000 |
| Interest Rate Per Year | 10% | 10% |
| Number of Years | 40 | 30 |
| Future value |
| Part c. (Essay) |
| Part d. |
| a | b |
| Annual payment | 2,000 | 2,000 |
| Interest Rate Per Year | 10% | 10% |
| Number of Years | 40 | 30 |
| Future value |
| Problem 5-37: |
| Part a: Future value of a single amount compounded: |
| A | B | C | D |
| Present Value | 2,500 | 50,000 | 1,000 | 20,000 |
| Interest Rate | 6% | 12% | 5% | 16% |
| Number of years | 5 | 3 | 10 | 6 |
| Compounding Frequency | 2 | 6 | 1 | 4 |
| Future value |
| Part b: Effective Annual Rate |
| A | B | C | D |
| Present Value | 2,500 | 50,000 | 1,000 | 20,000 |
| Interest Rate | 6% | 12% | 5% | 16% |
| Number of years | 5 | 3 | 10 | 6 |
| Compounding Frequency | 2 | 6 | 1 | 4 |
| Effective Annual Rate = |
| Part c: (Essay Answer) |
| P5-53: |
| Part a (use table method): |
| Single | Single | Life of | Approximate |
| Investment | Investment | Return | Investment | Interest Rate |
| A | 5,000 | 8,400 | 6 |
| B | 5,000 | 15,900 | 15 |
| C | 5,000 | 7,600 | 4 |
| D | 5,000 | 13,000 | 10 |
| Part b: |
King Wave
MGMT_240_Wk3_HW.xlsx
