User Account

All Pages

How important is the time value of money

Assignment Help Finance Basics
Reference no: EM131728013

Question: How important is the time value of money? A recent search on one web engine returned more than 791 million hits! It is important to understand the calculations behind the time value of money, but the advent of financial calculators and spreadsheets has eliminated the need for tedious calculations. In fact, many websites offer time value of money calculators. The following is an example from Moneychimp's website, www.moneychimp.com. You need $150,000 in 25 years and will invest your money at 9.2 percent. How much do you need to deposit today? To use the calculator, you simply enter the values and hit "Calculate." The results look like this:

1940_Inputs.png

1. Use the present value calculator on this website to answer the following: Suppose you want to have $140,000 in 25 years. If you can earn a 10 percent return, how much do you have to invest today?

2. Use the future value calculator on this website to answer the following question: Suppose you have $8,000 today that you plan to save for your retirement in 40 years. If you earn a return of 10.8 percent per year, how much will this account be worth when you are ready to retire?

Reference no: EM131728013

Questions Cloud

Calculate dollar amount of betty finished goods inventory : Calculate the dollar amount of Betty's finished goods inventory that would appear on the December 31, 2019 balance sheet using absorption costing
Events affects stock prices : Using an IS-LM model, illustrate and explain how each of the following events affects stock prices. If the effect is ambiguous, explain what additional.
What dollar amount should be deducted from the balance : You are doing a bank reconciliation for May, 2010. What dollar amount should be deducted from the balance per bank statement
List and explain the constitutional limitations : List and explain the "constitutional limitations" when drafting a "criminal statute". EBHFDE
How important is the time value of money : How important is the time value of money? A recent search on one web engine returned more than 791 million hits! It is important to understand the calculations.
Discusses the state of the indian economy : Identify a related article that discusses the state of the Indian economy and its potential for growth in coming years.
Calculate derricks total federal tuition : Determine how much income, if any, is required to be reported on a tax return - Calculate Derrick's total federal tuition, education and textbook amount
Theory of the firm-labor markets and imperfect information : Movie theaters charge differing prices to adults, children, and students; additionally, most theaters charge lower prices for afternoon showings.
Compute stefani total standard cost per unit : Stefani Company has gathered the following information about its product. Compute Stefani's total standard cost per unit

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd