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.

1. Aaron is planning a dream vacation traveling for 4 years through each of the countries in Central and South America. He will need $36,000/each year to meet expenses. How much money must he have at the start of his trip to be able to fund his dream? Assume the money will earn 4%. 2. Billy wants to have $25,000 available for a down payment in 10 years. He just received an inheritance and wants to know how much he would have to set aside now in order to reach his goal if his money were to earn 7%? 3. Refer to #2, Instead of 7%, the rate is 18%. What would your answer be? 4. Based on your answers from #2 and #3, complete this sentence: The higher the interest rate, the the present value. WHY is this true?? Write your answer to this question BELOW your answer to this question. Your answer is important to remember - it shows a key relationship and comes up in later chapters (obviously, no timeline for this problem 13SSSSSS