TIME VALUE OF MONEY (use BAll Plus Financial Calculator to answer questions 25-30). If you do not have a financial calculator use the Preferred Short Cut Factor Tables spreadsheet found in Canvas Modules. 25. $ You plan to start your own business in 5 years once you graduate from college and get situated. You plan save $250 every month for the next 5 years. The market rate you can earn is 9%; 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 $30,000 for a down payment for your first home. You mentioned to her you plan to buy a home in 6 years. She agrees to set aside money for you today so she will have money to give you when you purchase your first home. The market rate she can earn over the investment period is 6% and it will compound quarterly, what amount will she set aside today? (Round to nearest dollar) I 27. S You won the lottery when the jackpot was advertised at $3,000,000 (based on annual payments of $100,000 for 30 years). Your choice is to take the annual payments for 30 years or take the lump sum payout today which is the present value of the advertised jackpot. The lottery administration uses a 3.5% interest rate. What is the value of the lump sum payout? (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, you'll have money to start a family. What will be the value of your investment if the rate you can earn on your investments is 8%, compounding semi-annually for 7 years? (Round to nearest dollar) 29. A. S & B.S (Round to nearest dollar) You can earn a market rate of 6%. A. What is the monthly payment amount necessary to save $25,000 by the end of 5 years? B. If you borrow $25,000 today what is the amount of the monthly payment to pay it off in 5 years?