A ________ shows the dollar amount and total number of periodic payments owed on a debt obligation.
More frequent compounding results in ________ future values and ________ present values.
The appropriate compounding or discount rate to use in a particular problem depends upon:
What is the future value of $5,000 in 10 years if the interest is compounding at 8% annually?
What is the present value of $5,000 received in 10 years if the interest is compounded at 8% annually?
In an annuity due, the cash flows occur at the end of each period.
What is the annual rate of return on an investment of $5000 that grows to $8,955 in 10 years?
Sinking fund problems determine the annuity amount necessary to recover some initial investment.
What is the future value of $500 per year for 10 years invested at 10%?
What is the monthly payment on a $184,000 mortgage loan, payable over 30 years with an APR of 6.8 percent?