Instruction
You are required to use a financial calculator or spreadsheet (Excel) to solve 10 problems (provided on page 3) on the applications of the time value of money. You are required to show the following 4 steps for each problem (sample questions and solutions are provided for guidance):
(i) Develop the timeline (linear representation of the timing of cash flows)
(ii) Identify the time value of money variable (PV, FV, PMT, N or Rate) which needs to
be calculated in the question.
(iii) Identify the values of the remaining four variables (PV, FV, PMT, N or Rate) from
the question. Be sure to input positive or negative signs.
(iv) Calculate the correct value of the variable identified in step (ii).