Find the future value of investing

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1. Find the future value of investing $100,000 today at 5% compounded annually and compounded quarterly for 30 years.

2. Find the present value of $100,000 due in 20 years at 5% rate.

3. Find the present value of $75,000 per year for 20 years at 5% rate.

4. Find the monthly mortgage payment for a 30-year loan with an amount of $500,000 at 4.75% for 30 years.

5. An investment requires an initial capital outlay of $12,000. The investment is expected to generate future cash flows of $1,000 one year hence, $2000 two years hence, $3,000 three years hence, $4,000 four years hence, $5,000 five years hence. Assume a 10% cost of capital.

6. Find the value of a corporate bond that pays 6% coupon rate, has $100 face value and 5 years to maturity. Market rate is 4%. Will you pay $100 for the bond? Explain.

Reference no: EM132384082

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