# Welcome to Test Your Skill (Part 1)!

Question 1:

If you purchase a lot today for \$ 9379, how much would the lot be worth if it is expected to increase in value at an annual rate of 6%, compounded semiannually, until you choose to sell it 18 years from now?

1. Which key should you push to solve the problem? (Which key indicates the unknown?)

2. (If you purchase a lot today for \$ 9379, how much would the lot be worth if it is expected to increase in value at an annual rate of 6%, compounded semiannually, until you choose to sell it 18 years from now?)  After pushing 2 and the orange SHIFT key , which key should you push to tell the calculator that there is semi-annual compounding?

3. (If you purchase a lot today for \$ 9379, how much would the lot be worth if it is expected to increase in value at an annual rate of 6%, compounded semiannually, until you choose to sell it 18 years from now?)  After you push 9379, which key should you push?

4. (If you purchase a lot today for \$ 9379, how much would the lot be worth if it is expected to increase in value at an annual rate of 6%, compounded semiannually, until you choose to sell it 18 years from now?)  After you push 18 and the orange SHIFT key , which key should you push for the number of years?

5. (If you purchase a lot today for \$ 9379, how much would the lot be worth if it is expected to increase in value at an annual rate of 6%, compounded semiannually, until you choose to sell it 18 years from now?)  After pushing 6, which key should you push to indicate that the 6 is an interest rate per year?

Question 2:

What is your monthly payment on a mortgage loan of \$22093 for 13 years if the bank charges 16% annually compounded monthly?

1. Which key should you push to solve the problem? (Which key indicates the unknown?)

2. (What is your monthly payment on a mortgage loan of \$22093 for 13 years if the bank charges 16% annually compounded monthly?)  After pushing 12 and the orange SHIFT key , which key should you push to tell the calculator that there is monthly compounding?

3. (What is your monthly payment on a mortgage loan of \$22093 for 13 years if the bank charges 16% annually compounded monthly?)  After you push 22093, which key should you push?

4. (What is your monthly payment on a mortgage loan of \$22093 for 13 years if the bank charges 16% annually compounded monthly?)  After you push 13 and the orange SHIFT key , which key should you push for the number of years?

5. (What is your monthly payment on a mortgage loan of \$22093 for 13 years if the bank charges 16% annually compounded monthly?)  After pushing 16, which key should you push to indicate that the 16 is an interest rate per year?

Question 3:

What should you pay for a property which pays you \$590.00 monthly if you expect to earn 17% annually for 8 years and you expect to sell the property for \$956,930?

1. Which key should you push to solve the problem? (Which key indicates the unknown?)

2. (What should you pay for a property which pays you \$590.00 monthly if you expect to earn 17% annually for 8 years and you expect to sell the property for \$956,930?)  After pushing 12 and the orange SHIFT key , which key should you push to tell the calculator that there is monthly compounding?

3. (What should you pay for a property which pays you \$590.00 monthly if you expect to earn 17% annually for 8 years and you expect to sell the property for \$956,930?)  After you push 590, which key should you push?

4. (What should you pay for a property which pays you \$590.00 monthly if you expect to earn 17% annually for 8 years and you expect to sell the property for \$956,930?)  After you push 8 and the orange SHIFT key , which key should you push for the number of years?

5. (What should you pay for a property which pays you \$590.00 monthly if you expect to earn 17% annually for 8 years and you expect to sell the property for \$956,930?)  After pushing 17, which key should you push to indicate that the 17 is an interest rate per year?

Question 4:

How much should you deposit into a bank account quarterly in order to replace a roofing system you expect to cost \$77,257 in 25 years if the account pays you 8% annual interest?

1. (How much should you deposit into a bank account quarterly in order to replace a roofing system you expect to cost \$77,257 in 25 years if the account pays you 8% annual interest?)  Which key should you push to solve the problem? (Which key indicates the unknown?)

2. (How much should you deposit into a bank account quarterly in order to replace a roofing system you expect to cost \$77,257 in 25 years if the account pays you 8% annual interest?)  After pushing 4 and the orange SHIFT key , which key should you push to tell the calculator that there is quarterly compounding?

3. (How much should you deposit into a bank account quarterly in order to replace a roofing system you expect to cost \$77,257 in 25 years if the account pays you 8% annual interest?)  After you push 77257, which key should you push?

4. (How much should you deposit into a bank account quarterly in order to replace a roofing system you expect to cost \$77,257 in 25 years if the account pays you 8% annual interest?)  After you push 25 and the orange SHIFT key , which key should you push for the number of years?

5. (How much should you deposit into a bank account quarterly in order to replace a roofing system you expect to cost \$77,257 in 25 years if the account pays you 8% annual interest?)  After pushing 8, which key should you push to indicate that the 8 is an interest rate per year?

Question 5:

If you purchased a lot for \$ 55802 7 years ago, what is your expected annual rate of return if you can sell the lot for \$ 90,829 today and you assume bimonthly compounding?

1. Which key should you push to solve the problem? (Which key indicates the unknown?)

2. (If you purchased a lot for \$ 55802 7 years ago, what is your expected annual rate of return if you can sell the lot for \$ 90,829 today and you assume bimonthly compounding?)   After pushing 6 and the orange SHIFT key , which key should you push to tell the calculator that there is bi-monthly compounding?

3. (If you purchased a lot for \$ 55802 7 years ago, what is your expected annual rate of return if you can sell the lot for \$ 90,829 today and you assume bimonthly compounding?)   After you push 55802 and the key (to show a cash outflow), which key should you push?

4. (If you purchased a lot for \$ 55802 7 years ago, what is your expected annual rate of return if you can sell the lot for \$ 90,829 today and you assume bimonthly compounding?)   After you push 7 and the orange SHIFT key , which key should you push for the number of years?

5. (If you purchased a lot for \$ 55802 7 years ago, what is your expected annual rate of return if you can sell the lot for \$ 90,829 today and you assume bimonthly compounding?)   After pushing 90829, which key should you push?

Question 6:

What should you pay for a 24 year sandwich lease on a property which pays you \$1573.99 quarterly if you expect to earn 17% annually?

1. Which key should you push to solve the problem? (Which key indicates the unknown?)

2. (What should you pay for a 24 year sandwich lease on a property which pays you \$1573.99 quarterly if you expect to earn 17% annually?)  After pushing 4 and the orange SHIFT key , which key should you push to tell the calculator that there is quarterly compounding?

3. (What should you pay for a 24 year sandwich lease on a property which pays you \$1573.99 quarterly if you expect to earn 17% annually?)  After you push 1573.99, which key should you push?

4. (What should you pay for a 24 year sandwich lease on a property which pays you \$1573.99 quarterly if you expect to earn 17% annually?)  After you push 24 and the orange SHIFT key , which key should you push for the number of years?

5. (What should you pay for a 24 year sandwich lease on a property which pays you \$1573.99 quarterly if you expect to earn 17% annually?)  After pushing 17, which key should you push to indicate that the 17 is an interest rate per year?

## Are you ready to move on to Question 7?

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Time Value of Money Calculations