$10.$ Time Value of Money $($TVM$)$ Worksheet

Check Your Understanding

Your company currently has sales of $$200,000,$ but you expect to have $$500,000$ in sales in five years. How much do you expect sales to grow by each year?

Growth rate $=$

The city you live in currently has a population of $80,000.$ City planners have estimated that the population will grow at about $3\%$ over the next $10$ years. What is the city$$s expected population in $10$ years?

Population in $10$ years $=$

You currently have $$3,400$ in an investment account that returns $11\%$ per year. How long will you have to wait until you can make a $$5,000$ down payment on a car?

Years until you can make the down payment $=$

A loan you took out is due in three years and requires repayment of $$3,000.$ To pay off the loan, you set aside money in an account that pays $7\%$ interest. In order to meet your obligation, how much money needs to be in the account right now?

Money required today $=$