1. Calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compoundedannually, at the rate specified over the given period.

Single Cash Flow($)Interest Rate(%)YearsFuture Value($)

869,00046

243,0001722

155,0001413

585,000929

Single Cash Flow($)Interest Rate(%)YearsFuture Value($)

869,000461,099,562.23

243,0001722????

2-You have $400 in an account which pays 4.6% compounded annually. If you invest your money for 4 years, then how many dollars of interest will you earn by the end of theterm? The amount of interest you will earn by the end of the term is $_________

3.Ted Roberts has been offered the following future payments n years from today.If his opportunity cost is i, compounded annually, what value would he place on each opportunity?

Future Value($)Interest Rate(%)YearsPresent Value($)

9,300 6 10

6,300 7 28

6,000 17 30

4,000 11 19

Future Value($)Interest Rate(%)YearsPresent Value($)

9,300 6 10 ?????

4.Maria expects to receive a payment of $35,000 in 3 years.At a discount rate of 6%, what is the present value of thispayment? What is the present value of thepayment?

5.You have $580 in an account which pays 4.6% compounded annually.How many additional dollars of interest would you earn over 5 years if you moved the money to an account earning 6.7%? How many additional dollars of interest would you earn over 5 years from the account that pays 6.7%?

6.Andy promises to pay Opie $7,000 when Opie graduates from Mayberry University in 11 years. How much must Andy deposit today to make good on hispromise, if he can earn 7% on hisinvestments?How much must Andy deposit today to make good on his promise?

7.Compute the simple interest earned on a1-year $200 deposit that earns6% per year.

8.What is the future value of$124.49 after earning simple interest for five years at an annual rate of10%?

9.Molly Costner deposits$2,500 in her checking account today. Her checking account pays interest of2.5% compounded annually. Assuming Molly does not withdraw any funds and does not deposit any additionalfunds, how much will be in her account in 25years?

10.You will receive a $110,000 inheritance in 5 years.You could invest that money today at 8% compounded semi-annually. What is the present value of yourinheritance? What is the present value of yourinheritance?

Answer rating: 100% (QA)

Here are the answers 1 869000 at 4 for 6 years 109956223 2 You have 400 at 46 for 4 years Interest ... View the full answer