Develop a PowerPoint 10
slide presentation with introduction and conclusion that answers the following
12 questions:
1. What is the
relationship between discounting and compounding interest?
2. What is the
relationship between the present-value factor and the annuity present-value
factor?
3. What will $5,000
invested for 10 years at 8 percent compounded annually grow to? How many years
will it take $400 to grow to $1,671 if it is invested at 10 percent compounded
annually? At what rate would $1,000 have to be invested to grow to $4,046 in 10
years?
4. Calculate the future
sum of $1,000, given that it will be held in the bank for 5 years and earn 10
percent compounded semiannually. 5. What is an annuity due? How does this
differ from an ordinary annuity?
6. What is the present
value of an ordinary annuity of $1,000 per year for 7 years discounted back to
the present at 10 percent? What would be the present value if it were an
annuity due?
7. What is the future value of an ordinary
annuity of $1,000 per year for 7 years compounded at 10%? What would be the
future value if it were an annuity due?
8. You have just borrowed $100,000, and you
agree to pay it back over the next 25 years in 25 equal end-of-year payments
plus 10 percent compound interest on the unpaid balance. What will be the size
of these payments?
9. What is the present value of a $1,000
perpetuity discounted back to the present at 8 percent?
10. What is the present
value of a $1,000 annuity for 10 years, with the first payment occurring at the
end of year 10 (that is, ten $1,000 payments occurring at the end of year 10
through 19), given a discount rate of 10 percent?
11. Given a 10 percent
discount rate, what is the present value of an perpetuity of $1,000 per year if
the first payment does not begin until the end of year 10?
12.
Describe how Matthew 25:14-30 relates to the time value of money and concepts
included in the various questions.