1. What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
2. What is the present value of a $1,100 payment made in six years when the discount rate is 8 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
3. Compute the present value of a $2,000 deposit in year 1, and another $1,500 deposit at the end of year 3 if interest rates are 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
4. How much would be in your savings account in seven years after depositing $260 today if the bank pays 10 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
5. What is the future value of a $900 annuity payment over five years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
6. Approximately how many years are needed to double a $100 investment when interest rates are 5.25 percent per year? (Round your answer to 2 decimal places.)
7. What is the present value of a $400 payment in one year when the discount rate is 10 percent? (Round your answer to 2 decimal places.)
8. If the present value of an ordinary, 7-year annuity is $6,500 and interest rates are 7.5 percent, what’s the present value of the same annuity due? (Round your answer to 2 decimal places.)
