FIN 100 Week 4 Homework Chapter 9: E1, P2, P3, P4, P5, P6, P7, P16, P17, P19
E1: Go to the Federal Reserve Web site, http://www.federalreserve.gov. Click on the Consumer Information tab, and research consumer credit in the various hyperlinks. Find average interest rates charged by commercial banks on new automobile loans, personal loans, and credit card plans.
P2: Find the FV of $10,000 invested now after five years if the annual interest rate is 8 percent.
P3: Determine the future values (FVs) if $5,000 is …..in each of the following situations:
P4: You are planning to invest $2,500 today for three years at a nominal interest rate of 9 percent with annual compounding.
P5: Find the present value (PV) of $7,000 to be ……one year from now assuming a 3 percent annual discount interest rate.
P6: Determine the present values (PVs) if $5,000 is received in the future in each of the following situations:
P7: Determine the present value (PV) if $15,000 is to be ……..at the end of eight years and the discount rate is 9 percent. How would your answer change if you had to wait six years to receive the $15,000?
P16, P 17, P 19: Use a financial calculator or computer software program to answer the following questions: