These are TVM problems Homework Problems: Aaron is planning a dream vacation traveling for 4 years through each...

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These are TVM problems
Homework Problems:
Aaron is planning a dream vacation traveling for 4 yearsthrough each of the countries in Central and South America. He willneed $36,000/each year to meet expenses. How much money must hehave at the start of his trip to be able to fund his dream? Assumethe money will earn 4%.
Billy wants to have $25,000 available for a down payment in 10years. He just received an inheritance and wants to know how muchhe would have to set aside now in order to reach his goal if hismoney were to earn 7%?
Refer to #2, instead of 7%, the rate is 18%. What would youranswer be?
Based on your answers from #2 and #3, complete this sentence:The higher the interest rate, the ________________ the presentvalue.  WHY is this true?? Write your answer to thisquestion BELOW your answer to this question.
Your answer is important to remember –it shows a key relationship and comes up in later chapters(obviously, no timeline for this problem[KG1] )
You want to buy a boat in 5 years and need to have $8,000available to use as a down payment. How much would you need to saveeach year to reach that goal and your money will earn 9%? h
Refer to #5. Instead of saving each year, you want to save eachmonth to reach your desired $8,000. Assume the same rate and termas above. Note: you cannot divide your answer to #5 by 12.
Sandy is buying a car and wants to get a loan of $8,000. If therate is 6% and term is 5 years, what would the monthly paymentsbe?
Diane is going to save $300 every 6 months (twice a year) for10 years. If the rate is 8%, how much will she have?
Ken is going to save $300/month for 10 years, but will startTODAY. If the rate is 8%, how much will he have?   Notethe difference in your answer to this problem from #8. ExplainWHY is there a difference in your answers?
Uncle Guido wants to give you a gift. He tells you he willwrite a check to you of $1500 in 1 year, $2,600 in year 2 and$3,000 in year 3.   How much does Guido have to set asidenow in order to have sufficient funds to write all of those checks?Assume a 10% rate.
You get a loan of $100,000 for 10 year term. If the paymentsare $1,801.85/month, what is the interest rate on this loan(remember all rates are always quoted as annual figures)? Hint: setup timeline and determine which type of TVM problem it resembles.Then solve.
Carla will give $200 to you every three months for 10 years (4xper year). At year 10 she will also give $10,000 to you. Whatamount of money must be available in her bank account in order forher to have enough money to meet her promise. The rate is 12%.Hint: this problem is a combination of 2 types of TVM problems.Your final answer is the sum of the two.
Brett has contract that will pay him $10,000 at the end of 5years. Brett wants money now and not in 5 years, so he is willingto have contract signed over to you (so you would receive thatmoney) if you give him some money today. If you require a 12%interest rate on money you lend to friends. What is the maximumamount you would you be willing to pay for this contract?
[KG1]This is not useful here. Do another problem or omit.

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Aaron is planning a dream vacation traveling for 4 years through each of the countries in Central and South America He will need 36000each year to meet expenses How much money must he have at the start of his trip to be able to See Answer

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These are TVM problemsHomework Problems:Aaron is planning a dream vacation traveling for 4 yearsthrough each of the countries in Central and South America. He willneed $36,000/each year to meet expenses. How much money must hehave at the start of his trip to be able to fund his dream? Assumethe money will earn 4%.Billy wants to have $25,000 available for a down payment in 10years. He just received an inheritance and wants to know how muchhe would have to set aside now in order to reach his goal if hismoney were to earn 7%?Refer to #2, instead of 7%, the rate is 18%. What would youranswer be?Based on your answers from #2 and #3, complete this sentence:The higher the interest rate, the ________________ the presentvalue. WHY is this true?? Write your answer to thisquestion BELOW your answer to this question.Your answer is important to remember –it shows a key relationship and comes up in later chapters(obviously, no timeline for this problem[KG1] )You want to buy a boat in 5 years and need to have $8,000available to use as a down payment. How much would you need to saveeach year to reach that goal and your money will earn 9%? hRefer to #5. Instead of saving each year, you want to save eachmonth to reach your desired $8,000. Assume the same rate and termas above. Note: you cannot divide your answer to #5 by 12.Sandy is buying a car and wants to get a loan of $8,000. If therate is 6% and term is 5 years, what would the monthly paymentsbe?Diane is going to save $300 every 6 months (twice a year) for10 years. If the rate is 8%, how much will she have?Ken is going to save $300/month for 10 years, but will startTODAY. If the rate is 8%, how much will he have? Notethe difference in your answer to this problem from #8. ExplainWHY is there a difference in your answers?Uncle Guido wants to give you a gift. He tells you he willwrite a check to you of $1500 in 1 year, $2,600 in year 2 and$3,000 in year 3. How much does Guido have to set asidenow in order to have sufficient funds to write all of those checks?Assume a 10% rate.You get a loan of $100,000 for 10 year term. If the paymentsare $1,801.85/month, what is the interest rate on this loan(remember all rates are always quoted as annual figures)? Hint: setup timeline and determine which type of TVM problem it resembles.Then solve.Carla will give $200 to you every three months for 10 years (4xper year). At year 10 she will also give $10,000 to you. Whatamount of money must be available in her bank account in order forher to have enough money to meet her promise. The rate is 12%.Hint: this problem is a combination of 2 types of TVM problems.Your final answer is the sum of the two.Brett has contract that will pay him $10,000 at the end of 5years. Brett wants money now and not in 5 years, so he is willingto have contract signed over to you (so you would receive thatmoney) if you give him some money today. If you require a 12%interest rate on money you lend to friends. What is the maximumamount you would you be willing to pay for this contract?[KG1]This is not useful here. Do another problem or omit.