Time Value of Money Danielle Kaplan B6022-P A01 Calculate the future value of 100‚000 ten years from now based on the following annual interest rates 2 ( 100‚000 x (1.02)10 121‚899 5 ( 100‚000 x (1.05)10 162‚899 8 ( 100‚000 x (1.08)10 215‚892 10 ( 100‚000 x (1.10)10 259‚374 Calculate the present value of a stream of cash flows based on a discount rate of 8. Annual cash flow is as follows Year 1 100‚000 ( 100‚000 / (1.08) 92‚592 Year 2 150‚000 ( 150‚000 / (1.08)2 128‚600 Year 3 200
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Time Value of Money (TVM)‚ developed by Leonardo Fibonacci in 1202‚ is an important concept in financial management. It can be used to compare investment alternatives and to solve problems involving loans‚ mortgages‚ leases‚ savings‚ and annuities. TVM is based on the concept that a dollar today is worth more than a dollar in the future. That is mainly because money held today can be invested and earn interest. A key concept of TVM is that a single sum of money or a series of equal‚
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Time value of money‚ is exactly how it sounds. Time can determine the value of your money in aspects of Present Value (PV) and Future Value (FV). Present value is what your money is worth at the present point in time that you acquire it. Future value is what your money will be worth if you accrue interest over time. Equations for both are as follows. FV= PV (1 + i) ^n‚ PV= FV (1+i) ^ -n. Examples of both; you get $15‚000 now or $15‚000 in three years. If you take the $15k now and put it away
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about the life and dignity of the human person. The Catholic Church teaches that human life is sacred and that the dignity of the human person is the basis of a moral vision in society. This theme was definitely not portrayed in the movie‚ because the Hutus had no respect for the Tutsi people and they did not care about the basic human dignity everyone should receive. Another theme that relates to the movie was the call to family‚ community‚ and participation. It say that how we set up our society
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Time Value of Money According to the simple calculator on Bankrate.com‚ if I place $5000 in a saving account earning 2.50% Interest compounded at the end of a four year span I would have $10‚558.93 accumulated in my account. Setting the annual interest option to semi-annual I would have $10‚563.82. This is a difference of $4.89. Setting the annual interest rate to 3% compounded annually I would have $10‚716.56 in a four year span. Setting the Annual interest option to semi-annual I would have accumulated
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Time Value of Money Project Show all your work! Name _________________ 1. If Mrs. Beach wanted to invest a lump sum of money today to have $100‚000 when she retired at 65 (she is 40 years old today) how much of a deposit would she have to make if the interest rate on the C.D. was 5%? a. What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%. b. What would Mrs. Beach have to deposit if she
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1. You place $5‚000 in a savings account earning 2.50% interest compounded annually. How much will you have at the end of four years? How much would you have at the end of four years if interest is compounded semiannually? If interest compounded annually I would have saved $5‚519.06 at the end of four years. If interest compounded semiannually I would have saved $5‚522.43 at the end of four years. 2. Change the interest rate to a higher rate. How much will you have at the end of four years
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The Value of Life Imagine 3‚700 children murdered in one day; their bodies torn‚ bruised‚ or poisoned. Sadly‚ this is no sick fantasy‚ but a procedure called abortion‚ defined as an operation to end a pregnancy by removing an embryo or fetus from its mother’s womb (“Choose” sec 1). In the United States alone‚ approximately 1.37 million abortions occur per year. Late term abortions‚ or post first-term abortions‚ are known to cause serious health problems such as mental issues and moral dilemmas
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rulers of our country are doing corruption but we are unwilling to realize this fact. No one wants to raise his voice for the right cause. Arrogance‚ greed and leg pulling is common in our system. This is all due to lack of patriotism‚ unlike before every one is working for his self interest now. Joint family system has declined in recent decade. It is time now that we should wake up from this careless sleep. We should stop day dreaming and identify our own true culture‚ giving importance to our values
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HAPPINESS for OUR LIFE WHAT IS HAPPINESS: Happiness is thought of as the good life‚ freedom from suffering‚ flourishing‚ well-being‚ joy‚ prosperity‚ and pleasure. Are you truly happy? Do you even know what it means to be happy and what it takes to achieve happiness? These are important questions for anyone who is seeking happiness to ask themselves. I live my life to maintain my own happiness while trying my best to not cause unhappiness to anyone else. If you want to be happy you need to understand
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