Instructions: Please show all your working out. (example r=?,PV=?,FV=?,PMT=?, NPER=?). Use excel to calculate the answers. (formula =FV) (Formula =PV)

HINT: Annuity due you are using TYPE 1, which for ordinary Annity you are skipping the type.

1.What is the future value of $1000 deposit every year after 4 years with an interest rate of 5% per year?

2.Suppose you win the lottery. The winnings consists of 30 equal annual payments $30,000. You decide to save all of this money for your retirement, and you deposit it into an account that earns 6% per year. What is the amount in your retirement nest?

3.You hope to retire after 35 years and you need $750,000 in the bank to live the life you want after retirement. You can earn 8% per year on your investments. How much must you save every year to reachyour goal?

4.You have been offered an investment opportunity that will pay you $6,000 per year for 6 years. What is the value of this stream of cash flows at the end of year 6, if you receive payments at the END of each year and you require a return of 7%? What if you receive payments at the BEGINNING of each year?

5.You won the lottery! The price is $100 paid at the end of each of the next 4 years. What is the present value of the lottery annuity if the interest rate is 10%?

6.You won the lottery! The price is $100 paid at the beginning of each of the next 4 years. What is the present value of the lottery annuity if the interest rate is 10%?