1.

Using the data below prepare a balance sheet and cash flow statement. Determine the total asset, total liabilities, net worth, total cash inflow, and total outflow i. Rent for the month=$650 ii. Monthly take home pay=$1950 iii. Cash in chequing account= $450 iv. Savings account balance=$1890 v. Spending for food=$345 vi. Balance of educational loan=$2160 vii. Current value of automobile=$7800 viii. Telephone bill monthly=$65 ix. Credit card balance=$235 x. Loan payment=$80 xi. Auto insurance=$230 xii. Household possessions=$3400 xiii. Stereo equipment=$2350 xiv. Electricity payment= $90 xv. Lunches and parking at work=$180 xvi. Donations=$70 xvii. Home computer=$1500 xviii. Value of stock investment=$860 xix. Clothing purchase=$110 xx. Restaurant spending=$130

2

. Using future value and present value calculation,

Compute the time value of money for saving

i. The future value of a $500 savings deposit after 8 years at an annual interest rate of 1.5%

ii. The future value of saving $1500 a year for 5 years at an annual interest rate of 2.25

iii. The present value needed in a saving account that will earn 1.75 %annual interest rate if $2000 is needed at the end of 4 years.