1. What is the future value $____ after 15 years when interest is 4%? (See example).

2. What is the future value in the preceding problem if interest is compounded monthly?

3. What is the future value after 22 years of year-end deposits $_______ earning 3%

4. What is the future value in the preceding problem if deposits are year-beginning?

5. What is the most you should pay today for a piece of land which will be worth $500,000 in _______ years if you want a 15% return?

6. What is the present value of an annuity due which pays $_______ per year for 10 years if 12% discount rate is used?

7. How much would you pay today for a 25-year annuity paying $45,000 annually if it begins 15 years from now and you want a ________return?

8. If you want a _________% return, what is the most you should pay today for a stock that will trade $75 in 5 years and pay a $2 annual dividend?

9. If you paid $750 for an investment __________years ago that is now worth $2000, what was your rate of return?

10. If you save $100 per month, what annual rate of interest must you earn in order to accumulate $10,000 after 10 years?

11. If you borrow $250,000 for ______years and your monthly payment is $1000, what rate of interest are you paying?

12. If you bought a bond five years ago for $900 which paid annual interest of $__________ and sold it today for $950, what was your rate of return?

13. If you want to accumulate $__________ after 30 years and your bank pays 2%, how much will you have to deposit monthly?

14. If you borrow $_____________ for 25 years at 6%, what will be your monthly payment?

15. If you can earn _______________%, how long will it take for an investment today of $700 to grow to $5000?

16. If you save $100 monthly and your bank promises __________%, how many months will it take to accumulate $25,000?

17. If you borrow $__________ and repay $800 monthly at a rate of 6%, how many months will it take to repay the loan?

18. If your mutual fund has produced annual returns of 10%, -5%, 20% and ____________%, what is your arithmetic average return?

19. What is the geometric average return of the returns in Problem #18?

20. What is the standard deviation of the returns in #18?

EXAMPLE 1. What is the future value of $250 after 15 years when interest is 4%? Cell Column A 1 $250 2 15 3 4% $450.24 1. What is the future value of $_ after 15 years when interest is 4%? See example. 2. What is the future value in the preceding problem if interest is compounded monthly? 3. What is the future value after 22 years of year-end deposits of $_ earning 3%? 4. What is the future value in the preceding problem if deposits are year-beginning? 5. What is the most you should pay today for a piece of land which will be worth $500,000 in years if you want a 15% return? 6. What is the present value of an annuity due which pays $_ - per year for 10 years if a 12% discount rate is used? 7. How much would you have to pay today for a 25-year annuity paying $45,000 annually if it begins 15 years from now and you want a return? 8. If you want a % return, what is the most you should pay today for a stock that will trade at $75 in 5 years and pay a $2 annual dividend? 9. If you paid $750 for an investment years ago that is now worth $2000, what was your rate of return? 10. If you save $100 per month, what annual rate of interest must you earn in order to accumulate $10,000 after years? 11. If you borrow $250,000 for years and your monthly payment is $1000, what rate of interest are you paying? 12. If you bought a bond five years ago for $900 which paid annual interest of _and sold it today for $950, what was your rate of return? 13. If you want to accumulate $ after 30 years and your bank pays 2%, how much will you have to deposit monthly? 14. If you borrow $ for 25 years at 6%, what will be your monthly payment? 15. If you can earn %, how long will it take for an investment today of $700 to grow to $5000? 16. If you save $ 100 monthly and your bank promises %, how many months will it take to accumulate $25,000? 17. If you borrow $ __and repay $800 monthly at a rate of 6%, how many months will it take to repay the loan? 18. If your mutual fund has produced annual returns of 10%, -5%, 20% and %, what is your arithmetic average return? 19. What is the geometric average return of the returns in Problem #18. 20. What is the standard deviation of the returns in Problem #18