Time is Money means Time = Money
Don’t waste your money and don’t waste your time.
Think it twice! Is it really true that time = money?
What do you think?
Some people who are very busy and have tight schedules would say that. They like to be rush because for them, Time is Money. Firstly, I think the same thing, time is money because time is as precious as money. However, time is more important than money because how hard we work, when we lose our time, you cannot get it back, how hard we try. The only thing that we can do is move on and appreciate every time we have. As I see my sons, grow everyday, I come to realize that they become bigger and bigger. Of course that’s what I want, but I start to miss their babies’ time when I see other babies. I cannot do anything, I only can try to remember how they were look like when they were babies, what did they do, etc. Though I have money, I can’t buy that memories. Time cannot be bought by money. As I see my sons grow everyday, I realize that I have spent lots of time and money. In order to raise my kids, I will need both, Time and money. Money, I can always raise it, the harder I work, the more money I will get. But, it is not the same with time. How hard I work, I cannot raise more time, because time will keep go on and go on. Spending time with my kids are very precious time and important! It cannot be replaced by anything. Money cannot buy my precious time that I spend with my kids. When I loose my money, I would say, “It’s ok, I always can get it again. How if I loose my time? I cannot make a come back. Therefore, I conclude that Time is not money but Time is more important than money. "waste your money and you're only out of money, but waste your time and you've lost a part of your life."

...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...

...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...

...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...

... 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...

...Abstract
The first steps toward understanding the relationship between the value of dollars today and that of dollars in the future is by looking at how funds invested will grow over time. This understanding will allow one to answer such questions as; how much should be invested today to produce a specified future sum of money?
Time Value of Money
In most cases, borrowing money is not free, unless it is a fiver for lunch from a friend. Interest is the cost of borrowing money. An interest rate is the cost stated as a percent of the amount borrowed per a period of time, usually one year. The current market rates are composed of three items.
The Real Rate of Interest is what compensates lenders for postponing their own spending during the term of the loan. An Inflation Premium is added to offset the possibility that inflation may eat into the value of the money during the term of the loan. In addition, various Risk Premiums are added to compensate the lender for risky loans such as unsecured loans made to borrowers with questionable credit ratings or loans that the lender may not be able to easily resell.
The first two components of the interest rate listed above, the real rate of interest and an inflation premium, together are referred to as the nominal risk-free rate. In the United States, the nominal risk-free rate is estimated by the rate of US...

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