5. Consider the cash flows presented in the table below. What is the value of the cash flows in year 5 if the interest rate is 5.5 percent compounded annually?

Year Cash Flow

1 16,000

2 14,000

3 29,000

4 12,000

5 23,000

6. Consider the cash flows presented in the table below. What is the present value if the appropriate interest rate is 6 percent compounded annually?

Year Cash Flow

1 19,000

2 22,000

3 15,000

4 17,000

5 18,000

7. What is the present value of $11,000 per year for 17 years if the interest rate is 6.2%?

8. You are going to borrow $450,000 to buy a house. What will your monthly payment be if the annual interest rate is 4.8 percent and you borrow the money for 30 years?

9. You borrow $15, 000 to be repaid in 4 equal payments at the end of each of the next 4 years. The bank charges 6 percent compounded annually. Prepare the loan amortization schedule.