The question for this essay is
"Describe a significant experience or achievement that has special meaning to you."

"Time is money" a clich� that is known to all. Parents remind their kids of it, teachers preach to their students about it, and even society reinforces it with wages being paid by the hour. In such a world, technology has and perhaps always will be advancing forward in order to save the average person more of this "money". For instance, in the field of biomedical engineering, long strides or as some would dare to say, giant leaps have been made.

It was not too long ago that I went to an optometrist to have my eyes examined. I set aside the entire day, believing that I would leave the exam with dilated pupils and that like last time, I'd not be seeing properly for a solid three hours, three hours that I would never have returned to me. However, unbeknownst to me, in the time between my previous eye exams, a new machine had been developed. This machine called itself the Optomap Panoramic200 Retinal Imaging System, and on that day, it stood in the corner of a room and hummed sonorously. Casting it aside as a non-contact tonometer, I sat down and instinctively braced myself for air puffing, bright lights and minor discomfort or in other words, an eye exam. Passing through the tests in mere minutes, the dreaded moment of pupil dilation was to rear its unwanted head in. However, much to my surprise, I was directed to the corner where the previously sonorous hum now bordered ominous. The doctor then proceeded to ask if I would like to use the humming Optomap in lieu of pupil dilation. I asked apprehensively if this would be a simple procedure and was given an enthusiastic nod in return. Against my better judgment, I allowed for the optometrist to take images of the retina through the Optomap. Amazingly, it was mere seconds per eye and my exam was finished. This machine which at first appeared almost ominous had saved me three hours of my time. I had...

...6%. Interest is paid semiannually.
1. Prepare the entry to record the issuance of the bonds on Sawyer’s books.
2. The bond indenture agreement requires that Sawyer deposit money in a bond sinking fund annually beginning one year from the date of issue. The controller estimates that the annual rate of interest earned on the investments in the sinking fund will be 10%. What amount must be deposited annually in order to have enough money in the fund to pay off the bonds in 20 years?
3. Design a spreadsheet proving that the answer you got in 2 is correct.
4. Prepare the entry that will be made each year to record the payment to the sinking fund.
5. In what section of the classified balance sheet will the bond sinking fund appear?
l. Tom wants to retire at the end of this year (2011). His life expectancy is 20 years from his retirement. Tom comes to you, his CPA, to learn how much he should deposit on December 31, 2011 to be able to withdraw $50,000 at the end of each year for the next 20 years, with the first payment on December 31, 2012, assuming the amount on deposit will earn 6% interest annually.
1. Compute the amount that Tom must deposit on December 31, 2011.
2. Prepare an amortization schedule to prove that Tom will have enough money to live for 20 years.
Part II. Assume that you have graduated from Bridgewater State College and are a practicing CPA. One of your...

...Time Value of Money
The time value of money (TVM) or, discounted present value, is one of the basic concepts of finance and was developed by Leonardo Fibonacci in 1202. The time value of money (TVM) is based on the premise that one will prefer to receive a certain amount of money today than the same amount in the future, all else equal. As a result, when one deposits money in a bank account, one demands (and earns) interest. Money received today is more valuable than money received in the future by the amount of interest we can earn with the money. If $90 today will accumulate to $100 a year from now, then the present value of $100 to be received one year from now is $90.
To fully understand time value of money one must first understand a few terms. Present value and future value are totally different. They also have their disadvantages and advantages; it just depends on how they are used. Of course, present value is what you have right now at this present time. While future value is the amount of money you will have at a given time in the future. Future value has a tendency to be deep; meaning that who knows the future. Interest rates fluctuate everyday; so one can be losing while the other is gaining. Money is known to be...

...Time Value of Money
“Money has a time value associated with it and therefore a dollar received today is worth more than a dollar to be received in the future” (Block, Hirt, 2005). The time value of money may be based on the concept that one would prefer to receive a fixed payment today rather than the same fixed payment at a future date. This paper discusses some of the key components oftime value of money and identifies the application of time value of money in various businesses.
Commercial banks use various time value of money formulas daily. One example of the application of time value of money in commercial banks is through mortgages. Using the formula for present value of an annuity, a bank will solve the formula to determine the monthly payment amount, the borrower’s monthly mortgage payment.
Credit card financial service companies are commonly known to issue private student loans. Therefore, credit card companies would use the time value of money to determine loan payment schedules and the number that students most fear, the ending balance, the future value of the loan. Credit card companies would use the formula for present value of an annuity to determine the payment schedule, and they would use the formula for future value of an...

...Running Head: Time Value of MoneyTime Value of Money
University of Phoenix
Believe it or not many people through out the years thought that by putting money to the side, under the mattress or, even in the cookie jar that eventually one day they would be rich. Well not to spoil the surprise but the years it would take to make one rich by those means are far off and nothing in between. This is where Time Value of Money comes in. Time Value of Money is the idea that a dollar today is worth more than a dollar in the future, even after the adjustments of inflation, interest rates, and appreciation until the time come for the dollar in the future to be received. Simply stated invest. There are a variety of financial applications of the time value of money. This paper will identify different financial application, and components of a discount and interest rate. The goal is to list various financial applications, and explain the components of discount and interest rates.
Financial Applications
The time value of money can be applied to many everyday financial decisions. Suppose a parent wants to set aside present funds for their child’s educational future. Several factors will impact the ability to yield a return, such as the number of periods involved...

...Time Value of Money
The time value of money relates to many activities and decision in the financial world. “Understanding the effective rate on a business loan, the mortgage payment in a real estate transaction, or the true return on an investment depends on understanding the time value of money” (Block, Hirt, 2005). The concept of time value of money helps determine how financial assets are valued and how investors establish the rates of return they demand. Many different types of companies use the time value of money, such as commercial banks, credit card companies, insurance companies, retirement advisors, and the state government. As an individual or company, the importance of understanding how each of these company’s services can affect ones overall cash position is very important.
When determining the “future value, we measure the value of an amount that is allowed to grow at a given interest rate over a period of time” (Block, Hirt, 2005). When determining the present value one would reverse the method for calculating future value. Future value and present value calculations may also deal with annuities rather than single amounts, “which may be defined as a series of consecutive payments or receipts of equal amount” (Block, Hirt, 2005).
Financial Institutions use the time...

... This article will explain the financial concept of time value of money. The overview provides an introduction to the principles at work when money grows in value over time. These principles include future value of money, present value of money, simple interest and compound interest. In addition, other concepts that relate to factors that can impede the growth in value of money overtime are explained, including risk, inflation and accessibility of assets. Basic formulas and tables have been provided to assist in calculating various formulations of time value of money problems. Explanations of common financial dealings in which the time value of money is an important consideration, such as annuities, loan amortization and tax deferral options, are included to help illustrate the concept of the time value of money in everyday life.
The time value of money is a fundamental financial principle. Its basic premise is that money gains value over time. As a result, a dollar saved today will be worth more in the future, and a dollar paid today costs more than a dollar paid later in time. The reason for the increasing value in money over time is that money can be invested to...

...TIME VALUE OF MONEYTime value of money is useful in making informed business decisions. For example the "net present value method" can be used to help decide the best alternative among multiple alternative uses of a firm or personal financial resources. By discounting various alternatives to their "present value" one can compare the alternatives. Time value of money can also answer such questions as what one's investment will be worth at a certain point of time in the future, assuming a certain interest rate. Time value of money can also be used to compute such useful information as car, mortgage and other loan payments. Another use of time value of money in accounting is reporting of certain long-term assets and liabilities.
Time value of money is based on the principle of compound interest. Each time there is a compounding period the new principal is increased by the interest from the previous period.
Converting Before Using the Tables
When using the tables, you may need to convert if, for example, in a lump sum situation there are more than one compounding periods in a year. Or you may need to convert (to monthly compounding) if, for example, you are working with an annuity situation involving a car loan that involves monthly rather than annual...

...Time Value of MoneyTime value of money is an amount of money available today can be safely invested to accumulate to a larger amount in the future.
Present value- an amount of money available today.
Future amount-amount receivable/payable at a future date
Relationship Between Present Values and Present Values
The difference between present value and future amount is the interest that is included in the future amount. It depends on two factors:
1. Rate of interest at which present value increases
2. Length of time over which interest accumulates
The basic concept of Time Value of Money:
* A PV is always less than its future amount.
* A future amount is always greater than a present value
* A dollar available today is always worth more than a dollar that does not become available until a future date
* A dollar available at a future date is always worth less than a dollar that is available today
Future Value Concepts
Future Value of a Single amount
The future value of a single amount is the value at a future date of a given amount invested assuming compound interest.
Formula:
FV= p X (1+i)n
Where:
FV= future value of a single amount
P= principal (present value)
i= interest
n= number of periods
Future Value of an Annuity
The future value of an annuity is the sum of all the payments (receipts)...

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