Question: Please give explanation and show work. 5-1 FUTURE VALUE If you deposit $10,000 in a bank account that pays 10% interest annually, how much will
Please give explanation and show work.
5-1 FUTURE VALUE If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?
5-2 PRESENT VALUE What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?
5-6 FUTURE VALUE: ANNUITY VERSUS ANNUITY DUE Whats the future value of a 7%, 5-yearordinary annuity that pays $300 each year? If this was an annuity due, what would its future value be?
5-7 PRESENT AND FUTURE VALUES OF A CASH FLOW STREAM An investment will pay $100at the end of each of the next 3 years, $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value? Its future value?
5-14 FUTURE VALUE OF AN ANNUITY Find the future values of these ordinary annuities. Compounding occurs once a year. A. $400 per year for 10 years at 10%b. $200 per year for 5 years at 5%c. $400 per year for 5 years at 0%d. Rework parts a, b, and c assuming they are annuities due.
5-15 PRESENT VALUE OF AN ANNUITY Find the present values of these ordinary annuities. Discounting occurs once a year. A. $400 per year for 10 years at 10%b. $200 per year for 5 years at 5%c. $400 per year for 5 years at 0%d. Rework parts a, b, and c assuming they are annuities due.
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