Assignment 1 Continued

Deadline: Friday, 8th March, 9 AM

1. You plan to receive $15,000 in 4 years. If the discount rate is 6% annually, what is the
present value of this amount?
2. If you invest $3,000 at an annual interest rate of 5% for 7 years, what will be the
future value?
3. You will receive $800 each year for the next 6 years. If the discount rate is 8%, what
is the present value of this annuity?
4. If you deposit $250 each month into a savings account that pays 3% interest
compounded monthly, what will be the future value after 4 years?
5. You will receive $500 in one year, $1,200 in three years, and $1,800 in five years. If
the discount rate is 5%, what is the present value of these cash flows?
6. If you invest $1,500 today and expect to receive $300 in one year and $800 in three
years, what will be the future value at the end of three years, assuming a 4% interest
rate?
7. You plan to receive $1,000 each year for the next 8 years. If the discount rate is 7%,
what is the present value of this annuity?
8. If you invest $4,500 at an annual interest rate of 4% for 10 years, what will be the
future value?
9. You plan to receive $700 each quarter for the next 3 years. If the discount rate is 6%,
what is the present value of this quarterly annuity?
10. You deposit $600 per year into an account that earns an annual interest of 5%. If you
plan to keep making deposits for the next 6 years, what will be the future value?

Note: Assignment should be plagiarism free. Queries maybe raised at

meirajhassan@gmail.com