TVM

7. Donovan has determined that he will need $3 million when he retires in 45 years. The current interest rate is 10%. How much does he need today to fully fund this goal at that rate? (1.5 points)

8. Emmas grandma promised to give her $24,000 when she graduates from college five years from now. Assuming an interest rate of 10% annually, what is the value of Emmas gift right now? (1.5 points)