Homework 4 (15 points)

(Ch 5 problems (15 points): 5-5,5-10,5-12, 5-15)

Instructions: All homework problems are exactly similar to problems assigned above from chapter 5.
However, the numbers in these questions are different from your textbook. When there are multiple
questions within a question, I have separated them. Therefore, you see more questions in this
assignment.

Download the attached word document and solve all the problems before you start the quiz. You need
to enter final answer on the given box as you can see below in # 1. When you enter your answer
in the box, carefully follow the instructions. If you fail to follow the instructions and enter answer
incorrectly, I will not be responsible for your error. This is an auto-graded assignment.

The assignment (quiz) will be available for review only after the due date.

Round your answer to two decimal places. For example, if your answer is $345.667 enter as 345.67 and
if your answer is .05718 or 5.718% enter as 5.72 in the answer box provided.

Thank you and good luck!

1. Problem 5-5
You have $41,961.86 in a brokerage account, and you plan to deposit an additional $6,000 at the end of
every future year until your account totals $260,000. You expect to earn 10% annually on the account.
How many years will it take to reach your goal? Round your answer to two decimal places at the end of
the calculations.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

2. Problem 5-10
a.Find the future value of an initial $400 compounded for 10 years at 3%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

Answer $537.57
3. Problem 5-10
b.Find the future value of an initial $400 compounded for 10 years at 6%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.
 Answer $716.34

4. Problem 5-10
C.Find the present value of $400 due in 10 year at a discount rate of 3%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

Answer $298

5. Problem 5-10
d. Find the present value of $2,335 due in 10 years at 6%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

Answer $1,303.85

6. Problem 5-10
e. Find the present value of $2,335 due in 10 years at 3%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

7. Problem 5-10
f. Define present value.

The present value is the value today of a sum of money to be received in the future and in
general is greater than the future value.
The present value is the value today of a sum of money to be received in the future and in
general is less than the future value.
The present value is the value today of a sum of money to be received in the future and in
general is equal to the future value.
The present value is the value in the future of a sum of money to be received today and in
general is less than the future value.
The present value is the value in the future of a sum of money to be received today and in
general is greater than the future value.
8. Problem 5-12
Find the interest rates earned on the following.

b. You lend $660 and the borrower promises to pay you $759 at the end of 1 year.
 Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

9. Problem 5-12
Find the interest rates earned on the following.

d. You borrow $15,000 and promise to make payments of $4,058.60 at the end of each year for 5 years.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

10. Problem 5-15: Present value of an annuity

Find the present value of the following ordinary annuity. Discounting occurs once a year.

a. $400 per year for 12 years at 10%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

11. Problem 5-15: Present value of an annuity

Find the present value of the following ordinary annuity. Discounting occurs once a year.

a. $200 per year for 6 years at 5%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

12. Problem 5-15: Present value of an annuity

Find the present value of the following ordinary annuity. Discounting occurs once a year.

c. $900 per year for 6 years at 0%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

13. Problem 5-15: Present value of an annuity

Rework previous parts assuming that they are annuities due.

d. $400 per year for 12 years at 10%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.
14. Problem 5-15: Present value of an annuity

Rework previous parts assuming that they are annuities due.

e.$200 per year for 6 years at 5%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

15. Problem 5-15: Present value of an annuity

Rework previous parts assuming that they are annuities due.

f. $900 per year for 6 years at 0%.

Round your answer to two decimal places at the end of the calculations. For example, if your answer is
$345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box
provided.

16. If you would like to upload your work, please feel free to upload your excel or work file here.