What question 29 it’s not A. 358.32 B. 483.32 TIME VALUE OF MONEY (use BAII Plus FinancialCalculator to answer questions 25 – 30). If you do nothave a financial calculator use the Preferred Short CutFactor Tables spreadsheet found in Canvas Modules.25. $You plan to start your own business in5 years once you graduate from college and get situated.You plan save $250 every month for the next 5 years.The market rate you can earn is 9%; how much will yourinvestment accumulate to when you are ready to startyour business? (Round to nearest dollar)26. $Your favorite aunt has committed toprovide you with $30,000 for a down payment for yourfirst home. You mentioned to her you plan to buy a homein 6 years. She agrees to set aside money for you todayso she will have money to give you when you purchaseyour first home. The market rate she can earn over theinvestment period is 6% and it will compound quarterly,what amount will she set aside today? (Round to nearestdollar)27. $You won the lottery when the jackpotwas advertised at $3,000,000 (based on annualpayments of $100,000 for 30 years). Your choice is totake the annual payments for 30 years or take the lumpsum payout today which is the present value of theadvertised jackpot. The lottery administration uses a3.5% interest rate. What is the value of the lump sumpayout? (Round to nearest dollar) 27. $was advertised at $3,000,000 (based on annualpayments of $100,000 for 30 years). Your choice is totake the annual payments for 30 years or take the lumpsum payout today which is the present value of theadvertised jackpot. The lottery administration uses a3.5% interest rate. What is the value of the lump sumpayout? (Round to nearest dollar)You won the lottery when the jackpot28. $Your favorite uncle wants to give eachof his favorite nieces and nephews $30,000 now while heis still alive so he can appreciate the benefit of theirgratitude. Your goal is the save the money he gives youso when you get older, you'll have money to start afamily. What will be the value of your investment if therate you can earn on your investments is 8%,compounding semi-annually for 7 years? (Round tonearest dollar)29. A. $& B. $(Round to nearest dollar)You can earn a market rate of 6%.A. What is the monthly payment amount necessary tosave $25,000 by the end of 5 years?B. If you borrow $25,000 today what is the amount of themonthly payment to pay it off in 5 years?You would like to start savingfor retirement. Assuming you are now 22 years oldand you want to retire at age 60, you have 38 years towatch your investment grow. You decide to invest inthe stock market, which you expect it to earn about 6%per year into the future. You decide to invest $550 atthe end of each month for the next 38 years (456months). Calculate your accumulated investment at theend of 38 years. (Round to nearest whole dollar)30.$

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