Description
1) Future
value of single sum problem
You put $2,000 in an investment account today which will earn 8% over the next
14 years, what is the future value?
2) Perpetuity problem
What is the value of a perpetuity with an annual payment of $100 and a discount rate of 6%?
3) Future
value of single sum problem
You put $5,000 in an investment account today which will earn 6% over the next
11 years, what is the future value?
4) Present value of annuity
problem
You will receive $1,200 at the end of the next 15 years, assuming a 8% discount
rate, what is the present value of the cash flows?
5) Future value of annuity
problem
You deposit $10,000 into a retirement account at the end of the next 10 years
earning 9% interest, what is the future value of your retirement after 10
years?
