For each question, answer with the requirements (a - d) using excel:

a. Develop the timeline (linear representation of the timing of cash flows)

b. Identify the time value of money variable (PV, FV, PMT, N or Rate) which needs to be calculated in the question.

c. Identify the values of the remaining four variables (PV, FV, PMT, N or Rate) from the question. Be sure to input positive or negative signs.

d. Calculate the correct value of the variable identified in step (2).

Question #1 - The day Harry was born, his parents put $1200 into an investment account that promises to pay a fixed interest rate of 6 percent per year. How much money will Harry have in this account when he turns 21 (round to nearest $1)?

Question #2 - At what rate must $287.50 be compounded annually for it to grow to $650.01 in 14 years?

Question #3 - How much money must be put into a bank account yielding 6.42% (compounded annually) in order to have $1,671 at the end of 11 years (round to nearest $1)?

Question #4 - Biff deposited $9,000 in a bank account, and 10 years later he closes out the account, which is worth $18,000. What annual rate of interest has he earned over the 10 years?