TVM Problems (1) You lend a friend $30,000, which your friend will repay in five equal annual end-of-the year payments of $10,000, with first payment to be received 1 year from now. What rate of return does your loan receive? (2) Sales of a new finance book were 15,000 copies this year and were expected to increase 20 percent per years. What are expected sales in 3 years? (3) If you invest $900 in a bank in which it will earn 8 percent compounded quarterly, how much will it be worth at the end of 9 years? (4) You want to endow a scholarship that will pay $11,000 per year forever, starting one year from now. If the school's endowment discount rate is 6%, what amount must you donate to endow the scholarship? (5) You are trying to decide how much to save for retirement. Assume you plan to save $5,000 per year with the first investment make one year from now. You think you can earn 11.0% per year on your investment and you plan to retire in 39 years, immediately after making your last investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $5,000 per year, you wanted to make a lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? (6) Present Value and Multiple Cash Flows. Rooster Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18% ? At 22 percent? 8. You have received a windfall from an investment you made in a friend's business. She will be paying you $39,500 at the end of this year, $98,000 at the end of next year, and $150,600 at the end of the year after that (three years from today). The interest rate is 7.8% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)