Time Value of Money 1. Your grandfather promises to give you $10,000 if you graduate from college in 4 years. If your hurdle rate is 496, what is the present value of your grandfather's gift? Annual compounding semiannual compounding Quarterly compounding. 2. You decided to save $1,800 every sik months and invest it into a 5 year annuity. Your goal is to have $19,710 at the end of five years. What annual return do you need to achieve? 3. You have decided to purchase land costing $210,000 today and the finance terms require quarterly payments over 6 years at an interest rate of 8%, what is your quarterly payment? 4 What would you prefer: A $2,000 signing bonus or a bonus in one year of $2,600 if your hurdle rate is 8%