TVM HOMEWORK ASSIGNMENT This homework is due by the end of day on November 9 (Excerpt from the course outline: ., a separate homework, Excel for TVM (homework assignment on TVM using excel, will be assigned. This homework must be completed within the set deadline- to be announced on a later date- to receive a grade for the course; otherwise, a grade of I will be assigned for the course.) In an Excel spreadsheet, solve the TVM problems below. To submit this homework, you must send the Excel sheet through Blackboard submission link as an attachment. The formulas and/or functions used must be in the excel sheet for me to review. The format of the answers provided should be similar to the excel examples discussed in class (see Chapter 5_TVM examples.xls posted in Blackboard). Excel sheets with numbers only as answers will not be considered as submitted. (NOTE: Show two decimal points on your answers)

1.You have $13,000 to invest. You need the money in 14 years, and you expect to earn 7% per year. How much will you have in 14 years? (Assume the interest is compounded quarterly)

2. Steven needs $200,000 in 10 years for his daughter's education. If he can earn 5.9% per year, how much does he need to invest today?

3. You have $30,000 to invest and you need $90,000 for a down payment and closing costs on a house. If you want to buy the house in 7 years, what rate of interest do you need to earn?

4. You have $15,000 to invest right now and you figure you will need $35,000 to buy a new car. If you can earn 6.5% per year, how long before you can buy the car?

5. Consider the cash flows presented in the table below. What is the value of the cash flows in year 4 (i.e., find the FV) if the interest rate is 7 percent compounded annually? Year Cash Flow 1 2,000 2 5,000 3 6,000 4 4,000

6. Consider the cash flows presented in the table below. What is the present value if the appropriate interest rate is 7 percent compounded annually? Year Cash Flow 1 2,000 2 5,000 3 6,000 4 4,000

7. What is the present value of $7,000 per year for 12 years if the interest rate is 6.7%?

8. You are going to borrow $650,000 to buy a house. What will your monthly payment be if the annual interest rate is 5.8 percent, and you borrow the money for 30 years?

9. Suppose you borrow $18,000 to buy a car. You agree to pay $439.43 per month for 48 months. What is the monthly interest rate?

10. Suppose you begin saving for your retirement by depositing $200 per month in an IRA. If the interest rate is 8.5%, how much will you have in 40 years?