1) What is the key concept behind time value of money? 2) If your money doubles in 10 years, what is its approximate compound annual growth rate (hint: use the Rule of 72 and round to the nearest percent)? 3) If your money doubles in 5 years, what is its approximate compound annual growth rate (Hint: use the Rule of 72 and round to the nearest percent)? 4) In most cases, will simple interest be greater or less than compound interest? 5) Assuming a positive interest rate, will the present value be greater or less than the future value? 6) Will a longer time period increase or decrease the future value, assuming the same annual interest rate in both cases? 7) Will a higher discount rate increase or decrease the present value? 8) Ann buys a $300,000 house, with 20% down and a 6% annual interest rate and a 30 year mortgage. What are the approximate monthly payments? (Hint: calculate the annual payment and divide by 12) (4 pts) 9) A family spends $28,000 a year for living expenses. If prices increase by 4% a year for the next 3 years, what amount will the family need for their living expenses after 3 years? Please use the formula method. (2 pts) 10) You would like to have $1,000 5 years from now and believe you can earn 6% on your money. How much would you have to deposit today to reach your $1,000 goal? (2 pts) 11) How much would you need to deposit today in order to take out $500 a year for 10 years from an account earning 8% interest? (2 pts) 12) You are age 30. You invest $2000 a year until age 60, when you want to retire. How much will you have at retirement, if you earn 7% per year on your money? (2 pts) 13) You buy a stock for $10 a share and sell it 3 years later for $18 a share. What is the precise (rounded to the nearest 10th of a percent) compound annual growth rate? Please use the CAGR formula method. (2 pts)