Answer the following questions using time value of money formulas or the TI BA II Plus financial calculator. Unless indicated otherwise, all cash flows occur at the end of the period. 1. Earl wants to know how much he will have available to spend on his trip to Belize in three years if he deposits $3000 today at an interest rate of 9 percent compounded quarterly. (FV) 2. Rodney received a total of $1000 cash as graduation gifts from various relatives. He wants to invest it in a guaranteed investment certificate (GIC) so that he will have a down payment on a car when he graduates from university in five years. His bank will pay 3 percent interest compounded annually for the five-year GIC. How much will Rodney have in five years to put down on his car? (FV) 3. Michelle is attending college and has a part-time job. Once she finishes college, Michelle would like to relocate to a metropolitan area. She wants to build her savings so that she will have a "nest egg" to start her off. Michelle works out her budget and decides that she can afford to set aside $50 per month for savings. Her bank will pay her 3 percent interest compounded annually on her savings account. What will Michelle's balance be in five years? (FV) 4. Farah will receive $1550 each year for 15 years from an ordinary annuity that she has recently purchased. If she earns interest at a rate of 6.6 percent compounded annually, what is the present value of the amount that she will receive? (PV) 5. Cheryl wants to have $2000 in spending money to take on a trip to Niagara Falls in three years. How much must she deposit now in a savings account that pays 4 percent interest compounded monthly to have the money she needs in three years? (PV) 6. Shania would like to finance the purchase of her car. If she borrows $20 000 as a five-year loan from the bank and the bank requires her to make end-of-month payments of $400, what is the annual interest rate on her loan if interest is compounded monthly and the loan is completely paid off at the end of the five-year period? (1/Y) 7. If Shazaad wants to save $40 000 for a down payment on a home in five years, assuming an interest rate of 4.5 percent compounded quarterly, how much money does he need to save each month? (PMT) 8. Amy and Vince want to save $7000 so they can take a trip to Prince Edward Island in four years. How much must they save each month to have the money they need if they can get 8 percent interest compounded semi-annually on their savings? (PMT) + 53 N