Problem 1

Find the following values:

a. The future value of a lump sum of $6,000 invested today at 9 percent, annual compounding for 7 years.

Future value = present value x (1 + I / n) ^ nt

Future value = $6000 x (1 + 0.09 / 1) ^ (1 * 7)

Future value = $10,968.23

b. The future value of a lump sum of $6,000 invested today at 9 percent, quarterly compounding for 7 years.

Future value = $6000 x (1 + 0.09 / 1) ^ (4 * 7)

Future value = $11,187,27

c. The present value of $6,000 to be received in 7 years when the opportunity cost (discount rate) is 9%, annual compounding.

Present value = FV / (1 + i/n) ^ nt

r = rate per period

t = years x compounding

Present value = $6000 / (1 + 0.09) ^ (7)

Present value = $3,282.21

d. The present value of $6,000 to be received in 7 years when the opportunity cost (discount rate) is 9% quarterly compounding.

Present value = $6000 / (1 + 0.09 / 4) ^ (4 * 7)

Present value = $3,217.94

e. What is the effective annual rate (EAR) if the stated rate is 10% and compounding occurs monthly?

f. What is the present value of an ordinary annuity who pays $1,500 per year for ten years at 8 percent?

g. What is the present value of an annuity due who pays $1,500 per year for ten years at 8 percent?

h. What is the future value of an ordinary annuity who pays $1,500 per year for ten years at 8 percent?

i. What is the future value of an annuity due who pays $1,500 per year for ten years at 8 percent?

I NEED E, F, G, H, AND I ANSWERED PLEASE....THANK YOU