### Time Value of Money: FV, PV, annuity, amortize, compounding, perpetuity, payment

3- Time value of money - It is now January 1, 2006, and you will need $1,000 on January 1, 2010, in 4 years. Your bank compounds interest at an 8 percent annual rate. a. How much must you deposit today to have a balance of $1,000 on January 1, 2010? b. If you want to make 4 equal payments on each January 1 from 2007 thr