For questions 1 through 10: On a word document (Document 1), identify what type of TVM problem(s) are being used from the following list: Present value Future value Present value of an annuity Future value of an annuity Annuity of a present value Interest rate Identify the financial calculator you are using and list the keys to be used to solve the problem, including an answer.

1. A person places $500 into an investment that will earn 12% annually. How much will they have in 4 years?

2. Bob wants to propose marriage to Sue. He wants to buy a $2,000 ring in 11 months. How much must he save monthly in order to be able to buy the ring if he can earn 9% on his money?

3. Beverly is offered $1,000 four years from now. If she desires a 13% annual return, how much would she be willing to pay for this?

4. Ted and Jill have just bought a home for $200,000. If they can get a thirty year fixed rate mortgage at 6.75% on a 75% Loan to Value, how much will their monthly payment be?

5. You've just won the lottery! The prize is $20,000,000, payable in twenty-five equal, annual installments. If you require 7.5% from your investments, how much money in PV dollars have you actually won?

6. I offer you $350 now in return for repayment of $650 six years from now. What is the interest rate that I'm charging you?

7. I am 28 years old and plan on retiring at age 65. I spend $4 each day on my favorite coffee like beverage at Starbucks. If I forego my daily Starbucks and can instead invest my money at a return rate of 10%, how much extra money will I have at the time of my retirement?

8. I am 31 years old and have $30,000 in savings. I plan on saving $1,000 per month until I retire at age 68. I'm of the opinion that I can make 9% on my investments. If the actuaries say that I will live to be 94,and I shift my post-retirement savings to a safer portfolio that delivers a 4% return, how much can I take each month from my portfolio and end up with exactly no money when my time is up?

9. A $1,000 par value bond matures in 8 years. It has a 7% coupon rate, with semi-annual interest payments. The yield (the rate at which investors are using to calculate the price of the bond) is 8%. What is the fair market value of the bond?

10. I expect to receive the following cash flows over the next three years: Year 1 $2,000 Year 2 $3,000 Year 3 $5,000 If my discount rate is 9%, what is the present value of this cash flow series?