For your job as the business reporter for a local newspaper, you are given the task of putting together a series of articles that explains the power of the time value of money to your readers. your editor would like you to address several specific questions in addition to demonstrating for the readership the use of the time value of money techniques by applying them to several problems. what should be your response to the following memorandum from your editor? to: business reporterfrom: perry while, editor, daily planetre: upcoming series on the importance and power of the time value of moneyin your upcoming series on the time value of money, i would like to make sure you cover specific points. in addition, before you begin this assignment, i want to make sure we are all reading from the same script, because accuracy has always been the cornerstone of the daily planet. in this regard, i would like responses to the following questions before we proceed: a. what is the relationship between discounting and compounding? b. what is the relationship between the present-value factor and the annuity present-value factor? c. (1) what will $5,000 invested for 10 years at 8% compounded annually grow to? (2) how many years will it take $400 to grow to $1,671, if it is invested at 10% compounded annually? (3). at what rate would $1,000 have to be invested to grow to $4,046 in ten years? d. calculate the future sum of $1,000, given that it will be held in the bank for 5 years and earn 10 percent compounded semiannually. e. what is an annuity due? how does it differ from an ordinary annuity? f. what is the present value of an ordinary annuity of $1,000 per year for 7 years discounted back to the present at 10%. what would be the present value if it were an annuity due? g. what is the future value of an ordinary annuity of $1,000 per year for 7 years, compounded at 10%? what would be the future value if it were an annuity due? h. you have just borrowed $100,000, and you agree to pay it back over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest on the unpaid balance. what will be the size of these payments? i. what is the present value of a $1,000 perpetuity discounted back to the present at 8%j. what is the present value of a $1,000 annuity for 10 years with the first payment occurring at the end of year 10 (that is, ten $1,000 payments occurring at the end of year 10 through year 19) given a discount rate of 10%

Part two of threewhich accurately describes a cause for inflation? the federal reserve requires banks to keep more money on reserve. the federal reserve raises interest rates and slows economic activity. the government places too much money into circulation. the government places too little money into circulation. what are consequences of rapid inflation? (select all that apply.) savings accounts become less desirable because interest earned is lower than inflation individual purchasing power increases, which results in an increase in demand. individual purchasing power decreases, which results in a decrease in demand. people postpone purchasing expensive items, such as homes, until prices drop. how does the federal reserve stabilize and safeguard the nation’s economy? (select all that apply.) it distributes currency and oversees fiscal conditions. it implements american monetary policy. it regulates banks and defends consumer credit rights. it regulates and oversees the nasdaq stock exchange. what are functions of the federal reserve? (select all that apply.) it offers financial services within the government. it creates us coins. it prints us dollars. it enters us currency into circulation. how does the federal reserve bank fit into the balance of power among the three branches of the federal government established by the constitution? the chair of the federal reserve is appointed by the president and approved by the senate. the chair of the federal reserve is elected by popular vote. the chair of the federal reserve is appointed by congress and approved by the supreme court. the chair of the federal reserve is appointed in a secret meeting. who appoints the board of governors of the federal reserve system? the us president the us supreme court the us house of representatives the us senatewhy is federal oversight crucial to the operation of the federal reserve bank? the federal reserve is the nation’s central banking system. the federal reserve controls the nomination of legislators to committees. the federal reserve funds mandatory government expenditures. the federal reserve sets rules and regulations for the new york stock exchange. what is the government accountability office (gao)? an independent agency that answers to congress and audits the federal reserve an internal review agency of the federal reserve used to promote its mission a government agency that answers to congress and audits the united states mint a private agency that advises the dent about fiscal policyhow does the law of comparable advantage lead to international trade? countries that do not engage in trade are in a stronger position economically than countries that do trade. countries that cannot produce products efficiently have to trade for the goods and services that other countries have. countries that have more resources are able to trade for a wider variety of items that can be offered for sale. countries make products they can produce efficiently and are able to get the rest of what they need through trade. when might a country produce a product even though it cannot do so efficiently? (select all that apply.) to ensure national security to minimize the sale of exports to ensure a trade deficit to increase the balance of trade