To complete the problems below, You MUST:

a. Draw a time line using Word with question(s) marks and all the relevant data.

b. Write the identity of the type of TVM problem you are looking at. Use the following identifications:

PVLS, PVA, FVLS, FVA, PVA Payments, or FVA Payments.

c. Show STEP-BY-STEP how you are calculating your answers using the format below. I will deduct points this step is not included (see below for format). To solve your problems you can use EXCEL to solve, BUT you must set up the problem using the format below

d. Label your factor from the Tables with the correct rate and time period (make sure your rate and period correspond to the time frame in the problem). See below.

YOUR written ANSWER would be the following:

a. Your timeline

b. Problem Type: PVLS

c. Solution:

$10,000 x PVLS (6%, 5) = PVLS answer

$10,000 x .7473 = $7,473

12 Carla will give $200 to you every three months for 10 years (4x per year). At year 10 she will also give $10,000 to you. What amount of money must be available in her bank account in order for her to have enough money to meet her promise. The rate is 12%. Hint: this problem is a combination of 2 types of TVM problems. Your final answer is the sum of the two. 13. Brett has contract that will pay him $10,000 at the end of 5 years. Brett wants money now and not in 5 years, so he is willing to have contract signed over to you (so you would receive that money) if you give him some money today. If you require a 12% interest rate on money you lend to friends. What is the maximum amount you would you be willing to pay for this contract