# answer the following 5 questions

**5-1 ****FUTURE VALUE **If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?

**5-2 ****PRESENT VALUE **What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?

**5-6 ****FUTURE VALUE: ANNUITY VERSUS ANNUITY DUE **Whatâ€™s the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this was an annuity due, what would its future value be?

**Problem 1:**

You take out an amortized loan for $10,000. The loan is to be paid in equal installments at the end of each of the next 5 years. The interest rate is 8%. Construct an amortization schedule.

**Problem 2:**

A. Calculate the PV of $100 due in 5 years compounded daily at 12%.

B. Calculate the FV of $1000 due in 3 years at 6% compounded quarterly.

C. Calculate the FVA of $300 due at the end of each of the next 5 years at 4%.

D. Calculate the PVA of $300 due at the end of each of the next 5 years at 4%.