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1. If you want an investment to double in six years, what interest rate must it earn?
2. What is the future value of a 3-year ordinary annuity of $100 if the appropriate interest rate is 10 percent?
3. What is the present value of the annuity?
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4. What would the future and present values be if the annuity were an annuity due?
5. What is the present value of the following uneven cash flow stream? The appropriate interest rate is 10 percent, compounded annually.
YEARS 0 1 2 3 4
Cash Flow 0 100 200 -200 100
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