Problem 5-6 Future value: annuity versus annuity due

What's the future value of a 5%, 5-year ordinary annuity that pays $600 each year? Round your answer to the nearest cent.

If this was an annuity due, what would its future value be? Round your answer to the nearest cent.

Problem 5-7 Present and future values of a cash flow stream

An investment will pay $100 at the end of each of the next 3 years, $250 at the end of Year 4, $400 at the end of Year 5, and $500 at the end of Year 6.

If other investments of equal risk earn 6% annually, what is its present value? Round your answer to the nearest cent.

If other investments of equal risk earn 6% annually, what is its future value? Round your answer to the nearest cent.

Problems 5-12

Effective rate of interest

Find the interest rates earned on each of the following. Round each answer to two decimal places.

You borrow $750 and promise to pay back $795 at the end of 1 year.

You lend $750 and the borrower promises to pay you $795 at the end of 1 year.

You borrow $89,000 and promise to pay back $246,805 at the end of 9 years.

You borrow $15,000 and promise to make payments of $4,058.60 at the end of each year for 5 years.