Future value and future value of an annuity

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Reference no: EM131834980

1. Future Value

Compute the future value in year 7 of a $2,800 deposit in year 1, and another $2,300 deposit at the end of year 4 using a 8 percent interest rate. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Future value =

2. Future Value of an Annuity

What is the future value of a $860 annuity payment over six years if interest rates are 10 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Future value =

3. Present Value of an Annuity

What's the present value of a $960 annuity payment over five years if interest rates are 9 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Present value =

4. Effective Annual Rate

A loan is offered with monthly payments and a 9.50 percent APR. What’s the loan’s effective annual rate (EAR)? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Effective annual rate = %

5. Future Value

Given a 5 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,950, $2,150, $2,150, and $2,450, respectively. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Future value =

Reference no: EM131834980

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