1. How many years in a typical perpetuity?
2. What is the relationship between the future value factor for five years at 5 percent and the present value factor for five years at 5 percent?
3. If a business manager deposits $30,000 in a savings account at the end of each year for twenty years what will be the value of her investment: at a compound rate of 12 percent? at a compounded rate of 18 percent? What would the outcome be in both cases if the deposits were made at the beginning of each year?
4. The chief financial officer of a home health agency needs to determine the present value of a $10,000 investment received at the end of year 10. What is the present value if the discount rate is: a. 6 percent b. 9 percent c. 12 percent d. 15 percent?