Time Value of Money Starter Activities Mini Essay: Provide a Written Response to the Following Questions. (Avoid cut & paste and, plagiarized responses) 1. Why does money have a time value? 2. How is compound interest computed? 3. What is a future value? 4. What is a present value? 5. Define an annuity in general terms. 6. Describe the cash flows related to an annuity from the viewpoint of the lender in terms of receipts and payments. 7. Explain how to use time-value-of-money calculations to measure an installment note liability. Required Exercise TVM ACTIVITY Pro Wood Determine the: a. Future value of a single cash flow $5,000 that cams 7% interest compounded annually for 10 years. b. Future value of an annual annuity of 10 cash flows of $500 each that cams 7% compounded annually. c. Present value of $5,000 to be received 10 years from now, assuming that the interest (discount) rate is 7% per year. d. Present value of an annuity of $500 per year for 10 years for which the interest (discount) rate is 7% per year and the first cash flow occurs 1 year from now. Note: Show all calculations even if you use a computer program. Refer to the appropriate tables. Round answers to two decimal places