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Assume that you are nearing graduation and that you have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions: a. (1) What is the future value of an initial $100 after three years if it is invested in an account paying 10% annual interest? (2) What is the present value of $100 to be received in three years if the appropriate interest rate is 10\% per year? b. What is the difference between an ordinary annuity and an annuity due? What type of annuity is shown in the following cash flow time line? How would you change it to the other type of annuity? c. (1) What is the future value of a 3-year ordinary annuity of $100 if the appropriate interest rate is 10% ? (2) What is the present value of the annuity? (3) What would the future and present values be if the annuity were an annuity due? d. (1) Define the stated, or quoted, or simple, rate, (rsamie), annual percentage rate (APR), the periodic rate (rier), and the effective annual rate (rese). (2) What is the effective annual rate for a simple rate of 10%, compounded semiannually? Compounded quarterly? Compounded daily? e. (1) Construct an amortization schedule for a $1,000 loan that has a 10% annual interest rate that is repaid in three equal instaliments

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