– Why does money have a time value?
-What is a deferred annuity?
-List five different financial applications of the time value of money.
-What is the present value of?
$8,000 in 10 years at 6 percent?
$16,000 in 5 years at 12 percent?
$25,000 in 15 years at 8 percent?
-If you invest $12,000 today, how much will you have:
In 6 years at 7 percent?
In 15 years at 12 percent?
In 25 years at 10 percent?
In 25 years at 10 percent (compounded semiannually)?
-How much would you have to invest today to receive:
$12,000 in 6 years at 12 percent?
$15,000 in 15 years at 8 percent?
$5,000 each year for 10 years at 8 percent?
$40,000 each year for 40 years at 5 percent?