1. How do you explain the use of time value of money (TVM) in business? What considerations are made when calculating TVM? How may you use TVM to create your own, or someone else's, retirement plan?

2. Give three examples of how the time value of money might take on importance in business decisions.

3. Supposed you consider depositing your savings $10,000 in one of the 3 banks, all of which pay 10% interest; bank A compounds annually, bank B compounds semiannually, and bank C compounds daily. Which bank would you choose? Why? (Please show the details of your calculation.)