Question

Q.1.Differentiate future value from present value and explain how compound interest differs from simple interest.
Q.2. John expects to need $50,000 as a down payment on a house in six years. How much does she need to invest today in an account paying 7.25 percent?
Q.3. Richard is planning to invest $25,000 today in a mutual fund that will provide a return of 8 percent each year. What will be the value of the investment in 10 years?
Q.4.What do you mean ratio analysis? Discuss important ratios used for analyzing financial statements.
Q.5.How do an ordinary annuity, an annuity due, and a perpetuity differ? Explain.