Calculate:

• Calculate a time value of money problem for A Through B and the equation provided for each problem.

Letters	Problem	Equation
A through B	Compute the future value of $2,000, at an interest rate of 5%, compounded annually, in 6 years.	Equation 4.11: F V n =P V 0 (1+r) n
C through D	Compute the future value of $1,000, at an interest rate of 3%, compounded annually, in 4 years.	Equation 4.11 F V n =P V 0 (1+r) n
E through F	Compute the present value of $5,000 received in 6 years, using a discount rate of 2%.	Equation 4.14: P V 0 =F V n (1+r) n also expressed as:
G through I	Compute the present value of $10,000 received in 4 years, using a discount rate of 7%.	Equation 4.14: P V 0 =F V n (1+r) n also expressed as: P V 0 = F V n (1+r) n
J through K	Compute the future value of annual payments of $100, paid for 5 years, with an interest rate of 8% (compounded).	Equation 4.17: F V n =C F 1 (1+r) N1 +C F 2 (1+r) N2 +...C F n
L through M	Compute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of 3% (compounded).	Equation 4.17: F V n =C F 1 (1+r) N1 +C F 2 (1+r) N2 +...C F n
N through P	Compute the present value of annual cash payments of $200 per year, for 4 years, using a discount rate of 5%.	Equation 4.16: P V 0 = C F 1 (1+r) 1 + C F 2 (1+r) 2 +... C F n (1+r) n
Q through S	Compute the present value of annual cash payments of $600 per year, for 3 years, using a discount rate of 8%.	Equation 4.16: P V 0 = C F 1 (1+r) 1 + C F 2 (1+r) 2 +... C F n (1+r) n
T through V	Compute the present value of a $400 cash payment received in perpetuity, using a discount rate of 10%.	Equation 4.19: P V 0 = CF r
W through Z	Compute the present value of a $750 cash payment received in perpetuity, using a discount rate of 6%.	Equation 4.19: P V 0 = CF r

• Write out each step you used to solve the problem you were assigned, and provide the solution to the problem as well.
  • Present your final solution as a decimal approximation carried out to the second decimal point (e.g., $000.00).
• Explain the meaning of the problem and your solution.
• Explain your answers to the following questions:
  • If the rate in the problem was higher, would the solution be higher or lower?
  • If the time period in the problem was shorter, would the solution be higher or lower?
• Describe an element of this problem that was challenging to you.
• Ask at least one question about time value of money mathematics.