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# Basic TMV concepts

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1. Future Value. What is the future value of
a. \$800 invested for 14 years at 11 percent compounded annually?
b. \$210 invested for 8 years at 9 percent compounded annually?
c. \$650 invested for 12 years at 8 percent compounded annually?

2. Present Value. What is the present value of
a. \$803 to be received 18 years from now at a 10 percent discount rate?
b. \$406 to be received 7 years from now at a 5 percent discount rate?
c. \$400 to be received 10 years from now at a 9 percent discount rate?

3. Future Value of an Annuity. What is the future value of
a. \$557 a year for 12 years at 5 percent compounded annually?
b. \$748 a year for 9 years at 12 percent compounded annually?
c. \$442 a year for 7 years at 11 percent compounded annually?

4. Present Value of an Annuity. What is the present value of
a. \$1,163 a year for 12 years at an 7 percent discount rate?
b. \$329 a year for 6years at a 12 percent discount rate?
c. \$365 a year for 20 years at a 14 percent discount rate?

5. How many years will it take to grow
a. \$765 to a value of 2,028.19 at a compound rate of 14 percent?
b. \$321 to a value of 450.22 at a compound rate of 12 percent?
c. \$881 to a value of 1,305.78 at a compound rate of 7 percent?

6. Interest Rate. At what interest rate will it take to grow
a. \$800to a value of 1,017.13 over 6 years?
b. \$600 to a value of 1,082.08 over 5 years?
c. \$401 to a value of 1,311.16 over 6 years?

7. Car Loans (Hint: P/Y=12). How much is a car loan with a payment of
a. \$453 per month for 3 years at 6% interest per year?
b. \$466 per month for 5 years at 15% interest per year?
c. \$301 per month for 6 years at 7% interest per year?

8. Mortgages (Hint: P/Y=12).
What was the initial mortgage on the house?
a. \$4,369.66 per month for 30 years at 8 percent interest?
b. \$1,626.83 per month for 15 years at 4 percent interest?
c. \$3,724.21 per month for 30 years at 18 percent interest?

9. Mortgages (Hint: P/Y=12). What is the payoff on a 30 year, 6% mortgage of
a. \$255,413 with a payment of 1,321.33 with 8 years remaining?
b. \$530,493 with a payment of 3,180.57 with 12 years remaining?
c. \$297,266 with a payment of 1,782.26 with 11 years remaining?