. Please use a financial calculator or financial calculator application for all problems (please see syllabus). To receive credit for your calculations, please include the appropriate time value of money variables chart with your response. There is no need to document the time value of money formula used, as provided in the textbook. We will be using a financial calculator for all problems, which will help students prepare for exams and for future financial counseling and planning courses.

Future Values.

(a) The future value of lump-sum investment of $4,000 in four years that earns 6 percent.

N	4
I/Y	6
PV	-4,000
PMT	0
FV	CPT

(b) The future value of $1,500 saved each year for three years that earns 6 percent.

N	3
I/Y	6
PV	0
PMT	-1,500
FV	CPT

(c) A person who invests $1,200 each year finds one choice that is expected to pay 3 percent per year and another choice that may pay 4 percent. What is the difference in return if the investment is made for four years?

N	4	4
I/Y	3	4
PV	0	0
PMT	-1,200	-1,200
FV	CPT	CPT

(d) The amount a person would need to deposit today with a 5 percent interest rate to have $2,000 in three years.

N	3
I/Y	5
PV	CPT
PMT	0
FV	2,000