Question 1: Calculate the future value of the following:
a. $49,298 if invested for five years at a 7% interest rate
b. $79,119 if invested for three years at a 4% interest rate
c. $69,124 if invested for seven years at an 2% interest rate
d. $39,929 if invested for ten years with a 0.9% interest rate
Question 2: Calculate the present value of the following:
a. $105,126 to be received three years from now with a 4% Interest rate
b. $228,231 to be received five years from now with a 5% interest rate
c. $192,000 to received two years from now with a 12% interest rate
d. $998,111 to be received eight years from now with a 1% interest rate.
Question 3: Suppose you are to receive a stream of annual payments (also called an "annuity") of $72,394 every year for three years starting this year. The interest rate is 4%. What is the present value of these three payments?
Question 4: Suppose you are to receive a payment of $189,299 every year for three years. You are depositing these payments in a bank account that pays 2% interest. Given these three payments and this interest rate, how much will be in your bank account in three years?