Time Value of Money Exercises 1. Martin wants to invest $5,000. If the interest rate is...

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Time Value of Money Exercises 1. Martin wants to invest $5,000. If the interest rate is 8% what will the value be after three years, a. (2 points) if simple interest is used to calculate the value? b. (2 points) if interest compounds annually? c. (2 points) If interest compounds biannually? 2. Grace wants to know how much she will need to invest today, so that she can have $10,000 in three years, if the investment will earn 10% a. (2 points) If interest compounds annually b. (2 points) If interest compounds quarterly. Time Value of Money Exercises 1. Martin wants to invest $5,000. If the interest rate is 8% what will the value be after three years, a. (2 points) if simple interest is used to calculate the value? b. (2 points) if interest compounds annually? c. (2 points) If interest compounds biannually? 2. Grace wants to know how much she will need to invest today, so that she can have $10,000 in three years, if the investment will earn 10% a. (2 points) If interest compounds annually b. (2 points) If interest compounds quarterly.

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