Please show your work for each question using EXCEL or Word (if you choose to manually calculate). Attach the EXCEL or Word file in your submission. I will provide partial credit if the work is shown although the answer is not correct. Take your time to read each question carefully and work through each calculation. This will be the most intense chapter regarding formulas and calculations. Use the resources provided in the module. 1) A business owner puts $100,000 into a business money market account which pays an interest rate of 3.50% compounded annually. How much will the business have at the end of the third year (solve for FV)? 2) A business owner has the following options to invest $25,000 of excess cash. Which option should the owner select if she does not need the money for operations and expects rates to stay at current levels? If interest rates are expected to rise in the coming year, which option would you select and why?

6% compounded annually for four years

5% compounded annually for six years

12% compounded annually for two years

3) What is the present value (PV) of an investment paying $10,000 in 5 years at a rate of either (a) 4% interest rate and (b) 6% interest rate. Explain why the present value is lower when the interest rate is higher.

4) A local government invests $100,000 over the next 20 years at a rate of 7%. How much will the investment be worth at the end of the 20 years (solve for FV)?

5) A company wants a surplus of $350,000 in ten years to renovate their manufacturing plant. How much does the company have to invest today if the rate of return is 8% annually (solve for PV)?

6) What was the most difficult concept in Chapter 4 and why? After learning the concepts around the Time Value of Money, does this change how you view the ability to grow your own savings in the future?