# answer the following 5 questions

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?

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5-6 FUTURE VALUE: ANNUITY VERSUS ANNUITY DUE Whatâ€™s the future value of a 7%, 5-year ordinary annuity that pays \$300 each year? If this was an annuity due, what would its future value be?

Problem 1:

You take out an amortized loan for \$10,000. The loan is to be paid in equal installments at the end of each of the next 5 years. The interest rate is 8%. Construct an amortization schedule.

Problem 2:

A. Calculate the PV of \$100 due in 5 years compounded daily at 12%.
B. Calculate the FV of \$1000 due in 3 years at 6% compounded quarterly.
C. Calculate the FVA of \$300 due at the end of each of the next 5 years at 4%.
D. Calculate the PVA of \$300 due at the end of each of the next 5 years at 4%.