TIME VALUE OF MONEY (use BAII Plus Financial Calculator to answer questions 25 30). If you do not have a financial calculator use the dynamic factor tables in Canvas (module 8Factor Table, type in the interest rate and compounding periods in the blue highlighted portion of the factor table, itll calculate the factor you need).

25. $_________. You plan to start your own business in 4 years, once you graduate from college and get situated. You plan save $300 every month for the next 4 years. The market rate you can earn is 6%; how much will your investment accumulate to when you are ready to start your business? (Round to nearest dollar)

26. $_________. Your favorite aunt has committed to provide you with $25,000 for a down payment for your first home. You mentioned to her you plan to buy a home in 5 years. She agrees to set aside money for you so that you will have the money in time to purchase your first home. The market rate she can earn over the investment period is 8% and it will compound quarterly, what amount will she set aside today? (Round to nearest dollar)

27. $__________. You won the lottery when the jackpot was $3,300,000. Your choice is to take the annual payments for 30 years or take the lump sum today. The lottery administrations discount rate is 3%. What is the pretax value of the lump sum? (Round to nearest dollar)

28. $_________. Your favorite uncle wants to give each of his favorite nieces and nephews $30,000 now while he is still alive so he can appreciate the benefit of their gratitude. Your goal is the save the money he gives you so when you get older, youll have money to start a family. What will be the value of your investment if the rate you can earn on your investments is 7%, compounding semi-annually for 7 years? (Round to nearest dollar)

29. A. $______.__ Or B. $_____.___. The amount is $40,000, the market rate is 9%, the time is 5 years and the payments will be monthly. A. What is the payment if you want to have the amount at the end of the time period? Or B. What is the payment if you borrow the amount today and have to make payments to pay off the borrowing over the time period? (Round to nearest CENT)

30. $_____________You would like to start saving for retirement. Assuming you are now 22 years old and you want to retire at age 60, you have 38 years to watch your investment grow. You decide to invest in the stock market, which you expect it to earn about 6% per year into the future. You decide to invest $625 at the end of each month for the next 38 years (456 months). Calculate your accumulated investment at the end of 38 years. (Round to nearest dollar)