INSTRUCTIONS This week's RATEL is about thinking about how we could use the financial tools we have been covering. 1. Choose TWO of the three topics. 2. Then, set-up the scenarios. They can be personal or made-up, about your life or about a business. They can be very realistic, or more chance-related (like winning the lottery or buying a dream house). 3. After that do the calculations. Make sure to include the work for doing the calculations in your RATEL submission. 4. Finally, check that they answer you get is reasonable. (For example, if you get a mortgage payment of $200/month for 30 years on a million dollar house, this is not reasonable; in this case, go back and look for an error.) Here are the topics to chose from and questions to answer about each: 1. Future Value Annuities (Saving Regularly in an Interest-Earning Account. Assume it's Ordinary, meaning everything happens at the end of the month). What are you saving for? How much is deposited each period? What is the interest rate? How frequently are the compounding/investing periods? For how long will you be saving? How much will be in the account at the end? 2. Present Value Annuities (Getting Regular Disbursements. Also assume its ordinary). What is the initial amount of money in the account? How did you acquire this money? What will you spend it on? What is the regular disbursement? What is the interest rate? How frequently are the compounding periods/disbursement periods? How long will you get disbursements? 3. Loan. What is the loan for? Home, Car, Business, Credit-Card? How much money is loaned? What is the interest rate? How frequently are the compounding periods/disbursement periods? How much are the payments