Use time value of money concepts to answer the following questions. Round all dollar answers to the nearest whole dollar and all other answers to two decimal places TIME VALUE OF MONEY PROBLEMS (1) You own stock that you purchased for S10 per share 5 years ago. Today, that same stock has a market value of $20 per share. What has been your average annual return on this stock over the five year period? (2) You are in the market to buy a house. The selling price of the house you want is $120,000 You will make a down payment of 10% of the selling price today and finance the rest with a thirty year mortgage that bears an interest rate of 8.5% per annum. If monthly payments are to be made at the beginning of each month for the thirty years, how much will your monthly house payment be? (3)Someone has just won the state lottery. The prize to be paid by the state amounts to $27 million and is to be paid out at the beginning of each year in equal annual installments over the next 20 years. If the first payment is made today, how much money must the state set aside today in order to pay the winner(s) their prize? Assume the state can invest its funds at an annual return of 9%, compounded annually Your son wishes to attend college starting in September of the year 2011. It is estimated that he will need $25,000 per year to pay for all of his college and college related expenses. He expects to take four years to complete his education. If you can invest money at 10% per annum, compounded annually, how much will you need to invest at the beginning of each year, starting in September of 1996, in order to have enough money for your son's education by September 2011? The funds will continue to earn interest until drawn out in the amount of$25,000 each year for the four years he attends college, even while he is attending college (4)