Time Value Money

1. Six years from now, you will receive $100,000 from an inherited trust account. What is this inheritance worth
   to you now if you can obtain it and earn 6.5 percent interest, compounded monthly?
2. Deb Parker buys a rental house, financed with a commercial loan of $140,000 at 4.20% for 15 years. What
   is her quarterly payment?
3. You want to accumulate $35,000 in cash to buy a car 4 years from today. You expect to earn 5 percent,
   compounded annually, on your savings. How much do you need to deposit today if this is the only money you
   save for this purpose?
   Format the above as follows:
   N
   I
   PV
   PMT
   FV

Sample Solution