Instructions: You are required to use a financial calculator or spreadsheet (Excel) to solve 10 problems (provided on page 5) on the applications of the time value of money. You are required to show the following 4 steps for each problem (sample questions and solutions are provided for guidance):

(i) Develop the timeline (linear representation of the timing of cash flows)

(ii) Identify the time value of the money variable (PV, FV, PMT, N, or Rate) which needs to be calculated in the question.

(iii) Identify the values of the remaining four variables (PV, FV, PMT, N, or Rate) from the question. Be sure to input positive or negative signs.

(iv) Calculate the correct value of the variable identified in step (ii).

1. On Naomi's sixth birthday, her parents put $24,000 into an investment account that promises to pay a fixed interest rate of 8 percent per year. How much money will she have in this account when she turns 18? Round to two decimal places. 2. Joel has $3,600,000 in a Roth IRA and is ready to retire. He plans to withdraw equal amounts at the end of each year for the next 20 years. If the funds remaining in the account continue to earn 8% annually, how much can he withdraw each year? Round to two decimal places. 3. Alice would like to raise $420,000 in ten years for her son to go to college. She plans to deposit equal amounts into an account at the end of each year earning 13% annually. How much must she invest each year if the first deposit is made at the end of the first year? Round to two decimal places