Bilbo Baggin will deposit $200 per month into his savings account earning 3 percent for the next 6 years. At the end of his savings he will use the money to buy a car. What type of time-value of money computation would he use to determine how much money he can spend 6 years from now? 1) Present value of a single amount 2) Future value of a single amount 3) Simple interest 4) Present value of an annuity 5) Future value of an annuity $1500 on deposit at 6.5% for 8 months would earn $65 : 1) True 2) False If a $10,000 investment earns a 7% annual return, what should its value be after 6 years? (Hint: use time value of money formulas) 1) $10,000 2) $10,700 3) $15,000 4) $15,010 5) $15,100 The formula for calculating net worth is 1) Assets - Cash outflows = Net worth. 2) Cash inflows Liabilities = Net worth. 3) Cash inflows - Cash outflows = Net worth. 4) Assets - Liabilities = Net worth. 5) Cash inflows + Liabilities = Net worth