# Finance problems

danben1

FIN/370 week 2

Cash Flow Problem Sets

Complete the following problem sets from Chapter 5 in Microsoft® Excel®:

• 5-1
• 5-3
• 5-5
• 5-7
• 5-12
• 5-15
• 5-39 (Calculate monthly payment only)

·         5-1   FutureValue Compute the future value in year 9 of a \$2,000 deposit in year 1 and another \$1,500 deposit at the end of year 3 using a 10 percent interest rate.

·         5-3   Future Value of an Annuity What is the future value of a \$900 annuity payment over five years if interest rates are 8 percent?

·         5-5   Present Value Compute the present value of a \$2,000 deposit in year 1 and another \$1,500 deposit at the end of year 3 if interest rates are 10 percent.

·         5-7   Present Value of an Annuity What’s the present value of a \$900 annuity payment over five

·         5-12   Present Value of an Annuity Due If the present value of an ordinary, 6-year annuity is \$8,500 and interest rates are 9.5 percent, what’s the present value of the same annuity due?

·          5-15   Effective Annual Rate A loan is offered with monthly payments and a 10 percent APR. What’s the loan’s effective annual rate (EAR)?

·         Loan Payments You wish to buy a \$25,000 car. The dealer offers you a 4-year loan with a 9 percent APR. What are the monthly payments? How would the payment differ if you paid interest only? What would the consequences of such a decision be?

• Posted: 3 years ago
• Due:
• Budget: \$15

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5-1FutureValueCompute the future value in year 9 of a \$2,000 deposit in year 1 and another \$1,500 deposit at the end of year 3 using a 10 percent interest rate.

5-3

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### Compute the future value in year 9 of a \$2,000 deposit in year 1 and another \$1,500 deposit at the end

FIN/370 week 2

Cash Flow Problem Sets

Completethe following problem sets from Chapter 5 in Microsoft®Excel®:

• 5-1
• 5-3
• 5-5
• 5-7
• 5-12
• 5-15
• 5-39 (Calculate monthly payment only)

5-1