Time Value of Money Exercise: Question I: an 8 percent annual rate, compounded you deposit s2,000 every three months at years? quarterly. How much will you have at the end of 15 You borrow a five-year 10,000 loan with monthly payments of s250. What is the annual rate on the loan? How much would you have to invest today to receive $40,000 in 10 years at 7.5 percent Question 4: years from her retirement fund. If Ms. Nelson will receive s15.000 a year for the next 20 of her retirement fund? a 5 percent interest rate is applied, what is the current value Question 5: months at 10 percent compounded semi-annually. Assume you deposit s2,000 every six 10 years? How much will you have at the end of Question 6: education inl0 years, how much must you deposit at If you need S20,000 for your son's in order to have the college the beginning of each year in the bank earning 5 percent money Question 7: percent, how large an annuity can If you have $10,000 in a savings account eaming 10 you draw out each year if you want nothing left at the end of7 years? Question 8: repaid in 3 equal payments at the end You borrow $1,000 at a 10 percent annual rate to be years? of each of the next 3 years. How large is the total interest payment over the three Question 9: that ranch for S2,500,000 ten years later. I invested S800,000 in a cattle ranch and I sold What was my annual percentage rate return? Question 10: purchase of my first home if I can afford to make How much can I borrow for the monthly payments of $500, and the annual interest rate is 6 percent on a 30-year mortgage