1. 1. An investor invested $40,000 in a stock index mutual fund with an annual return of 8%, if the % could be maintained for 20 years, what is the future value of the investment?

1. 2. An investor invested $30,000 in a bond index mutual fund with an annual return of 6%, if the % could be maintained for 25 years, what is the future value of the investment?

1. 3. An investor invested $50,000 in Coca-Cola stock with an annual return of 7%, if the % could be maintained for 30 years, what is the future value of the investment?

1. 4. An investor invested $25,000 in preferred stock with a dividend yield (payout) of 10%, if the % could be maintained for 35 years, what is the future value of the investment?

1. 5. An investor invested $10,000 in common stock with a dividend yield (payout) of 12%, if the % could be maintained for 40 years, what is the future value of the investment?

Solve the following five Future Value of an Ordinary Annuity problems using your calculator, then solve the same five problems using the Excel spreadsheet. You will generate the same answer with the calculator and the spreadsheet.

1. 6. An investor invested $5,000 in a stock index mutual fund on 12-31-XX, with an annual return of 6%, if the % could be maintained for 22 years, what is the future value of an ordinary annuity of the investment?

1. 7. An investor invested $10,000 in a junk bond mutual fund on 12-31-XX, with an annual return of 10%, if the % could be maintained for 15 years, what is the future value of an ordinary annuity of the investment?

1. 8. An investor invested $25,000 in Face-Book stock on 12-31-XX, with an annual return of 9%, if the % could be maintained for 40 years, what is the future value of an ordinary annuity of the investment?

1. 9. An investor invested $15,000 in a hedge fund on 12-31-XX, with an annual return of 12%, if the % could be maintained for 35 years, what is the future value of an ordinary annuity of the investment?

1. 10. An investor invested $100,000 in a real estate syndicate on 12-31-XX, that averaged an annual return of 15%, if the % could be maintained for 30 years, what is the future value of an ordinary annuity of the investment?

Solve the following five Future Value of an Annuity Due problems using your calculator, then solve the same five problems using the Excel spreadsheet. You will generate the same answer with the calculator and the spreadsheet.

1. 11. An investor invested $8,000 in a stock index mutual fund on 1-01-XX, with an annual return of 5%, if the % could be maintained for 25 years, what is the future value of an annuity due of the investment?

1. 12. An investor invested $12,000 in a junk bond mutual fund on 1-01-XX, with an annual return of 17%, if the % could be maintained for 15 years, what is the future value of an annuity due of the investment?

1. 13. An investor invested $5,000 in Face-Book stock on 1-01-XX, with an annual return of 6%, if the % could be maintained for 20 years, what is the future value of an annuity due of the investment?

1. 14. An investor invested $4,000 in a hedge fund on 1-01-XX, with an annual return of 10%, if the % could be maintained for 30 years, what is the future value of an annuity due of the investment?

1. 15. An investor invested $30,000 in a real estate syndicate on 1-01-XX, that averaged a return of 12%, if the % could be maintained for 40 years, what is the future value of an annuity due of the investment?

Solve the following five present value problems using your calculator, then solve the same five problems using the Excel spreadsheet. You will generate the same answer with the calculator and the spreadsheet.

16. Having $70,000 in 18 years for a babies college education would require an investment of how much money today in a mutual fund historically earning 7%. Calculate the present value.

17. If an investor is planning on saving $800,000 for his/her retirement in 35 years and assuming a 3% inflation rate, what is the value of the $800,000 today? Calculate the present value.

18. Having $400,000 (FV) in 30 years would require an investment of how much money today in a mutual fund historically earning 4%. Calculate the present value.

19. Having $280,000 (FV) in 25 years would require an investment of how much money today in a mutual fund historically earning 10%. Calculate the present value.

20. Having $1,200,000 (FV) in 20 years would require an investment of how much money today in a mutual fund historically earning 13%. Calculate the present value.

Solve the following five present value of an ordinary annuity problems using your calculator, then solve the same five problems using the Excel spreadsheet. You will generate the same answer with the calculator and the spreadsheet.

21. An investor is looking to buy a fixed annuity that will pay him/her $20,000 a year for 22 years starting on 12-31-XX. The interest rate (discount rate) is 8%. Calculate the present value of an ordinary annuity.

22. An investor is looking to buy a fixed annuity that will pay him/her $25,000 a year for 15 years starting on 12-31-XX. The interest rate (discount rate) is 6%. Calculate the present value of an ordinary annuity.

23. An investor is looking to buy a fixed annuity that will pay him/her $30,000 a year for 20 years starting on 12-31-XX. The interest rate (discount rate) is 10%. Calculate the present value of an ordinary annuity.

24. An investor is looking to buy a fixed annuity that will pay him/her $15,000 a year for 25 years starting on 12-31-XX. The interest rate (discount rate) is 5%. Calculate the present value of an ordinary annuity.

25. An investor is looking to buy a fixed annuity that will pay him/her $35,000 a year for 30 years starting on 12-31-XX. The interest rate (discount rate) is 4%. Calculate the present value of an ordinary annuity.

Solve the following five present value of an annuity due problems using your calculator, then solve the same five problems using the Excel spreadsheet. You will generate the same answer with the calculator and the spreadsheet.

26. An investor is looking to buy a fixed annuity that will pay him/her $20,000 a year for 20 years starting on 01-01-XX. The interest rate (discount rate) is 10%. Calculate the present value of an annuity due.

27. An investor is looking to buy a fixed annuity that will pay him/her $15,000 a year for 15 years starting on 01-01-XX. The interest rate (discount rate) is 7%. Calculate the present value of an annuity due.

28. An investor is looking to buy a fixed annuity that will pay him/her $35,000 a year for 25 years starting on 01-01-XX. The interest rate (discount rate) is 9%. Calculate the present value of an annuity due.

29. An investor is looking to buy a fixed annuity that will pay him/her $25,000 a year for 30 years starting on 01-01-XX. The interest rate (discount rate) is 4%. Calculate the present value of an annuity due.

30. An investor is looking to buy a fixed annuity that will pay him/her $30,000 a year for 23 years starting on 01-01-XX. The interest rate (discount rate) is 5%. Calculate the present value of an annuity due.

Answer rating: 100% (QA)

To calculate the future value of an investment you can use the formula Future Value Principal 1 Interest RateNumber of Periods For ordinary annuity problems you can use the formula Future Value of an ... View the full answer