Time Value of Money Name: Show all your work, complete answers in your handwriting, and submit the homework to Moodle. I. Time Value of Money Questions 1. Sue has a $5 million portfolio and invests 5 percent of it in a money market fund projected to eam 3 percent annually. Estimate the value of this portion of his portfolio after seven years. Steps (9 points): Answer (1 point): 2. How much would $1,000,000 due in 13 years be worth today if the discount rate interest rate time value of money) were 5.25%? Steps (9 points): Answer (1 point): 3. Your parents will retire in 25 years. They currently have $850,000 saved, and they think they will need $7,000,000 at retirement. What annual interest rate must they eam to reach their goal, assuming they don't save any additional funds? Steps (9 points): Answer (1 point): 1 Page