Total Present Value

1. Calculate the FV of $500 in 5 years, with 5% interest rate

• What if the interest rate is 6%, 7%, 8%……
• What if the N changes to 6, 7, 8……

2. Calculate the PV of $500 in 5 years, with 5% interest rate

• What if the interest rate is 6%, 7%, 8%……
• What if the N changes to 6, 7, 8……

3. Calculate the FV of a 5-year annuity of $500, with 5% interest rate

• What if the interest rate is 6%, 7%, 8%……
• What if the N changes to 6, 7, 8……

4. Calculate the PV of a 5-year annuity of $500, with 5% interest rate

• What if the interest rate is 6%, 7%, 8%……
• What if the N changes to 6, 7, 8……

5. Calculate the total present value of the following cash flows when the interest rate is 10% per year:

$100 at the end of year 1

$300 at the end of year 2

$300 at the end of year 3

$-50 at the end of year 4

6. Construct the amortization table for the 4-year car loan of $10,000 when the APR is 9%