# Cash flow problem sets | Business & Finance homework help

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Complete the following problem sets from Chapter 5 in Microsoft ®word ® :

5-1

5-3

5-5

5-7

5-12

5-15

5-39 (Calculate monthly payment only) I need help completing this assignment” MUST SHOW STEPS ON HOW YOU DID IT

5-1   FutureValue Compute the future value in year 9 of a \$2,000 deposit in year 1 and another \$1,500 deposit at the end of year 3 using a 10 percent interest rate. (LG5-1)

5-3   Future Value of an Annuity What is the future value of a \$900 annuity payment over five years if interest rates are 8 percent? (LG5-2)

5

5-5   Present Value 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. (LG5-3)

5-7   Present Value of an Annuity What’s the present value of a \$900 annuity payment over five years if interest rates are 8 percent? (LG5-4)

5-12   Present Value of an Annuity Due If the present value of an ordinary, 6-year annuity is \$8,500 and interest rates are 9.5 percent, what’s the present value of the same annuity due? (LG5-6)

5-15   Effective Annual Rate A loan is offered with monthly payments and a 10 percent APR. What’s the loan’s effective annual rate (EAR)? (LG5-7)

5-39   Loan Payments You wish to buy a \$25,000 car. The dealer offers you a 4-year loan with a 9 percent APR. What are the monthly payments? How would the payment differ if you paid interest only? What would the consequences of such a decision be? (LG5-9)