# Introduction

The intent of this assignment is to demonstrate that you can calculate present and future values of a single amount or an annuity, and calculate the effective interest rate of a loan. Time value of money calculations are important for a variety of applications such as capital budgeting, financing and even assessing our personal financial needs. Additionally, you need to know the real cost of using debt whether within a company or with your own personal finances.

# Instructions

Use time value of money tables, Excel or a financial calculator to calculate the values for each scenario. Remember to include all inputs and outputs and clearly mark your answers on your uploaded Word doc or Excel spreadsheet.

1. You invest \$10,000 today at 9% per year.  How much will you have in 15 years?
2. What is the current value of \$100,000 after 10 years if the discount rate is 12%?
3. You invest \$3,000 for 20 years at 11%.  How much will you have after 20 years?
4. How much must you set aside each year to accumulate \$75,000 after 15 years? The interest rate is 10%.
5. How much must you repay each year for five years to pay off a \$25,000 loan that you just took out?  The interest rate is 8%.
6. A credit card company quotes a nominal APR (annual percentage rate) of interest of 15%. What is the effective rate of interest?

 Subject Business Due By (Pacific Time) 09/27/2014 12:00 am
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