**Problems**

**BASIC PROBLEMS**

**Complete the following problem sets from Chapter 5 in Microsoft ^{®} Excel^{®}:**

**· 5-1**

**· 5-3**

**· 5-5**

**· 5-7**

**· 5-12**

**· 5-15**

**· 5-39 (Calculate monthly payment only)**

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**5-1 Future Value 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)**

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**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)**

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**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)**

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**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)**

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**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)**

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**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)**

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**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)**