1. Time Value of Money

Darlene needs an investment that will generate income of $300 at the end of year 1, $300 at the end of year 2, $500 at the end of year 3, $600 at the end of year 4, and $1,200 at the end of year 5. How much should Darlene pay for this investment if she can earn 6 percent on his investment? How does your answer change if she can only obtain an interest rate of 2.45%?

1. Financial Planning

For each of the following categories of information required for a comprehensive financial plan, describe in everyones own words the information that must be gathered:

• Retirement Planning
• Estate Planning
• Risk Management
• Employee Benefits
• Family Planning
• Educational Planning

1. Personal vs. Corporate

What are the similarities and differences between household and business financial processes for each of the following?

• Income
• Expenses
• Cash flows after maintenance expenses
• Additions to investments
• Leisure outlays

Use descriptive headings and subheadings to organize your writing, rather than numbering the paragraphs.