Each response should be a paragraph or two and should include a concept definition, where, why, how they are important or used in managing a business.

• 1. Explain what calculating the time value of money does.
• 2. What is the difference between effective rate and stated rate?
• 3.Explaintherelationshipbetweeninflationandthetimevalueofmoney.
• 4. Give two examples of using annuities.
• 5. Other than the obvious (that one is a payment you make and one is your savings amount) explain the differences in how a mortgage is calculated vs. how the monthly amount you want to save for retirement is calculated.
• 6. What impact does time period have on an annuity?
• 7.WhatarethethingsthatcanbedonetoincreaseaFICOscore.
• 8. Why is it important to consider the cost of long term capital expenditures when they reside on the balance sheet?
• 9. Describe the steps in creating a capital budget.
• 10.Explainthevarioussituationswhereeachoneofthesixtechniquesforcapitalbudgetingwouldbethebestonetoutilize.(Noteyouneedtocomeupwithasituationforeachoneofthesixtechniques).
• 11. What can you do to manage risk?
• 12. What is a financial plan?
• 13. Discuss the factors that can have a negative effect on a retirement plan.
• 14. Can these factors be managed?