Time Value Money problems. Complete each problem, show formulas and show all of your work!

1. What is the future value of the following set of cash flows 4 years from now? Assume interest rate 6.5%. t CF 200 200 2 300 300 300 2. What is the effective annual rate of 20% compounded daily? 3. Four years from now you will receive the first of ten annual $15,000 payments. The interest rate is 10%. What is the present value of this cash flow stream (PV @t=0)? 4. You need to borrow $139,970 to buy a Ferrari. The current loan rate is 4.99% compounded monthly and you want to pay the loan off in equal monthly payments over 48 months. What is the size of your monthly payment? 5. What is the future value in 12 years of $1,000 payments received at the beginning of each year for the next 10 years? Assume an interest rate of 5%. 6. You just won the lottery. You and your heirs will receive $40,000 per year forever, beginning 10 years from now. What is the present value of your winnings at a 7% discount rate? 7. [Challenging; You can skip this problem if it's too challenging; no penalty for not doing this problem] You borrowed $700 at 5% compounded quarterly. Your payments are $150 at the end of each year. How many years will you make payments on the loan? (Hint: compounding frequency is different from payment frequency; we know that r and t should be matched; compounding effect? Effective interest rate?)