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Score: 0 of 1 pt 3 of 20 (2 complete) HW Sce Problem 5-5 (similar to) (Present value) What is the present value of the following future amounts? a. $900 to be received 9 years from now discounted back to the present at 11 percent b. $200 to be received 6 years from now disc be received 6 years from now discounted back to the present at 9 percent c. $1,100 to be received 13 years from now discounted back to the present at 5 percent d. $1,050 to be received 5 years from now discounted back to the present at 20 percent a. What is the present value of $900 to be received 9 years from now discounted back to the present at 11 percent? $ (Round to the nearest cent.) Problem 5-21 (similar to) (Compound annuity) What is the accumulated sum of each of the following streams of payments? a. $510 a year for 8 years compounded annually at 10 percent. b. $104 a year for 6 years compounded annually at 7 percent. c. $33 a year for 11 years compounded annually at 11percent. d. $23 a year for 5 years compounded annually at 5 percent. a. What is the accumulated sum of $510 a year for 8 years compounded annually at 10 percent? $ (Round to the nearest cent.) Homework: Chapter 5 Homework Save Score: 0 of 1 pt 5 of 20 (2 complete) HW Score: 10%, 2 of 20 pts Problem 5-6 (similar to) Question Help (Compound value) Stanford Simmons, who recently sold his Porsche, placed $8,600 in a savings account paying annual compound interest of 5 percent. a. Calculate the amount of money that will have accrued if he leaves the money in the bank for 2, 5, and 15 years. b. If he moves his money into an account that pays 7 percent or one that pays 9 percent, rework part a using these new interest rates. c. What conclusions can you draw about the relationship between interest rates, time, and future sums from the calculations you have completed in this problem? a. What is the accrued value of $8,600 in a savings account paying annual compound interest of 5 percent for 2 years? $ (Round to the nearest cent.) LIONOVVOLTOUULOLOTOVOU Score: 0 of 1 pt 6 of 20 (2 complete) HW Score: 10%, 2 of 20 pts Problem 5-39 (similar to) 8 Question Help (Compound interest with nonannual periods) a. Calculate the future sum of $3,000, given that it will be held in the bank for 9 years at an APR of 6 percent. b. Recalculate part a using compounding periods that are (1) semiannual and (2) bimonthly (every two months). c. Recalculate parts a and b for an APR of 12 percent. d. Recalculate part a using a time horizon of 18 years (the APR is still 6 percent). e. With respect to the effect of changes in the stated interest rate and holding periods on future sums in parts c and d, what conclusions do you draw when you compare these figures with the answers found in parts a and b? a. What is the future sum of $3,000 in a bank account for 9 years at an APR of 6 percent? $ (Round to the nearest cent.)

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