Friday
May 6, 2016

1. Calculate the present value of an investment given the following information: (a) Years—20, (b) Rate—10%, and (c) Future Value—\$20,000.

2. Calculate the future value of an investment given the following information: (a) Years—10, (b) Rate—5%, and (c) Present Value—\$10,000.

3. Calculate the rate of return on an investment given the following information: (a) Years—25, (b) Present Value—\$50,000, (c) Future Value—\$400,000.

4. Calculate the number of years on an investment given the following information: (a) Present Value—\$32,000, (b) Future Value—\$165,000, and Rate—12%.

5. Calculate the present value of an annuity given the following information: (a) Years—10, (b) Payment—\$15,000, and Rate—15%.

6. Calculate the future value of an annuity given the following information: (a) Years—25, (b) Payments--\$25,000, and (c) Rate—4%.

7. Calculate the rate of return for the following annuity: (a) Present Value—\$24,000, (b) Number of Years—10, Payments \$2,600.

8. Calculate the present value of an ordinary annuity with the following characteristics: (a) Payment—\$10,000, (b) Number of Years—10, and (c) Rate—10%.

9. Calculate the current price of a bond that has the following characteristic: (a) Coupon--\$85, (b) Yield to Maturity—5%, and Number of Years—10.

10. Calculate the current price of a bond that pays semi-annual coupon payments and has the following characteristics: (a) Number of Years until maturity—20, (b) Annual Coupon Rate—4%, and (c) Yield to Maturity—5%.

11. Calculate the yield to maturity for a bond that has the following characteristics: (a) Coupon--\$50, (b) Price--\$1,080, and (c) Years until Maturity—20.

12. Calculate the price that you would be willing to pay for the following ‘no growth’ stock that has the following characteristics: (a) Annual Dividend--\$2.50 and (b) Investor’s required rate of return—10%.

13. Calculate the price that you would be willing to pay for the following ‘constant growth’ stock that has the following characteristics: (a) Annual Dividend—\$2.50, (b) Constant Growth Rate—8%, and (c) Investor’s required rate of return—10%.