1. Find the following values, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences. (Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.) Do not round intermediate calculations. Round your answers to the nearest cent.

An initial $200 compounded for 1 year at 7%.

$

An initial $200 compounded for 2 years at 7%.

$

The present value of $200 due in 1 year at a discount rate of 7%.

$

The present value of $200 due in 2 years at a discount rate of 7%.

$

2. Use both the TVM equations and a financial calculator to find the following values. (Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.) Do not round intermediate calculations. Round your answers to the nearest cent.

An initial $200 compounded for 10 years at 3%.

$

An initial $200 compounded for 10 years at 6%.

$

The present value of $200 due in 10 years at a 3% discount rate.

$

The present value of $200 due in 10 years at a 6% discount rate.

$

3. Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent.

$600 per year for 10 years at 8%.

$

$300 per year for 5 years at 4%.

$

$600 per year for 5 years at 0%.

$

Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.

Future value of $600 per year for 10 years at 8%: $

Future value of $300 per year for 5 years at 4%: $

Future value of $600 per year for 5 years at 0%: $

4. Find the present value of the following ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press PV, and find the PV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent.

$400 per year for 10 years at 10%.

$

$200 per year for 5 years at 5%.

$

$400 per year for 5 years at 0%.

$

Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.

Present value of $400 per year for 10 years at 10%: $

Present value of $200 per year for 5 years at 5% : $

Present value of $400 per year for 5 years at 0%: $