Part I: Solve 4 of the following time value of money problems by filling in the 4 columns to the right of the description. Be sure to solve 1 problem from each of the following 4 categories listed under Problem Types. I have completed the first row as an example. Part II: Discuss how you may use time value of money concepts in your personal life. For example, saving for college tuition or retirement, paying off a car loan or home mortgage. Give specific details as to how you would use these formulas for more effective decision making. Create 1 description and fill in the table for your newly created question. Problem Types: 1 pv = present value of $1 2 fv = future value of $1 3 PVAo = Present Value of an Ordinary Annuity of $1 (payment at end of period) 4 FVAo = Future Value of an Annuity of $1 (payment at end of period)

	Description	Type of Problem	Table	Formula	Answer
1	How much money must your rich uncle give you now to finance four years of college, assuming an annual cost of $48,000 and an interest rate of 6% (applied to the principal until disbursed)?	Present Value of an ordinary Annuity	PVAo	PV = 48,000 (3.465)	$166,325.07
2	How much interest would you earn if you deposited $300 at 6 percent for 27 months?
3	If you deposit $2,000 in a 5-year certificate of deposit at 5.2%, how much will it be worth in five years?
4	How much interest would you pay to borrow $670 for eight months at 12 percent?
5	You wish to borrow $18,000 to buy a new auto-mobile. Rate is 8.6% over five years with monthly payments. Find the monthly payment.
6	What is the future value of $800 at 8 percent after six years?
7	How much would you have in savings if you kept $200 on deposit for eight years at 8% compounded semiannually?
8	You choose to invest $50/month in a 401(k) that invests in an international stock mutual fund. Assuming an annual rate of return of 9%, how much will this fund worth if retiring in forty years?
9	What is the future value of an annual deposit of $230 earning 6 percent for 15 years?
10	If you invest $600/Year in a 401(k) that invests in an international stock mutual fund. Assuming an annual rate of return of 9%, how much will this fund worth if retiring in forty years?
11	What amount would you have in a retirement account if you made annual deposits of $375 for 25 years earning 12 percent, compounded annually?
12	What is the present value of $2,200 earning 15 percent for eight years?
13	How much money must you set aside at age 20 to accumulate retirement funds of $100,000 at age 65, assuming a rate of interest of 7%?
14	To have $6,000 for a childs education in 10 years, what amount should a parent deposit in a savings account that earns 12 percent, compounded quarterly?
15	If you deposit $2,000 in a 5-year certificate of deposit at 5.2% with quarterly compounding, how much will it be worth in five years?
16	What is the present value of a withdrawal of $200 at the end of each year for 14 years with an interest rate of 7 percent?
17	How much would you have to deposit now to be able to withdraw $650 at the end of each year for 20 years from an account that earns 11 percent?
18	What would be the annual payment amount for a $20,000, 10-year loan at 7 percent?