## CHECK THESE SAMPLES OF Money & Payments / Present value

...?Part A. PV=FV i)t PV=15,000 0.07 PV=$14,019 PV=FV i) t PV=15,000 0.04 PV=$14,423 B. Account A PV=6,500 0.06 PV=$6,132 Account B PV=12,600/ (1+0.06)2 PV=$11,214 C. At 7% discount rate At 5% discount rate PV = $ 175,421,661 At 3% discount rate PV = $182,858,207 The **present** **value** of the income stream is the lowest at 7% discount rate and the highest at 3% discount rate. This is because at a high discount rate the income due in the future is worth very little today and at a relatively low discount rate the income due in the future is worth relatively more. Part 2 In my opinion the Interstate Travel Centre business will be the riskiest of all the business plans as it requires an initial investment of...

4 Pages(1000 words)Essay

...?Introduction The objective of this paper is to get an understanding of the concept of the time **value** of **money**. We first study the two important concepts in the area: **Present** **value** and the Future **Value** and its importance to the subject of corporate finance. We then look at some questions which calculate the **present** **value** of the future cash flows and the future **value** of **present** cash investments. 1. The concept of time **value** of **money** is critical to the world of Finance and is very often the first subject that is taught in a Corporate Finance class. It is based on the simple premise that “A penny in hand today is worth more than a penny in hand tomorrow”. This is on the basis of assumption that the **money** in hand today can be invested... in...

4 Pages(1000 words)Essay

...into a **value** today; just like you can calculate the **value** to which a certain amount of **money** today will convert into on a future date.
Mortgage loans are Mortgage loans are an example of the proper application of the time **value** of **money**; reasons being the loans are given by deciding the series of future **payments** that are to be paid to the lender for a house that is bought.
More interest is paid in the beginning because the procedure follows compounding interest method. In this case, with each **payment**, as the principle amount to be returned decreases, the interest that has to be paid on it decreases too. The terms that...

3 Pages(750 words)Essay

...Amy Gunn Dr. Holmes ENC 1101 03 November The **Value** of **Money** As a child I had no concept of where **money** came from. I thought **money** was providedto every family, whether a parent worked or not. I remember going to the grocery store with my mom and every time she went, I would plead with her to buy me candy or a toy that I wanted. I did not care about how much it cost. I just knew my mother had the **money** to get me what I wanted. Now that I’m all grown up and have a family of my own, I realize that **money** is something that has to be earned.
When I was eight years old, I remember going to Wal-Mart with my mom. As we strolled through the...

3 Pages(750 words)Essay

...TIME **VALUE** OF **MONEY** Time **value** of **money** is a term that measures the increase or decrease in the **value** of **money** with respect to time. The buying powerassociated with certain amount of **money**; do change as the time passes and multiple factors such as inflation, exchange rates, interest rate and other fluctuations economic conditions come into play. Two factors are central in this concept; **present** **value** and future **value** of **money** (Homer and Leibowitz, 269-276).
One of the important financial decisions that many people make at individual level, is regarding...

1 Pages(250 words)Essay

...Time **Value** of **Money** al Affiliation: Question Time **value** of **money** is the consideration of the change in **value** of a given amount of **money** over a given period of time. This is because there are certain factors within the economy that create a state where a given sum of **money**, say $1,000, cannot purchase the same amount of items **presently**, as it could 5 or 10 years ago. This concept is used to analyse investment in terms of the **value** added to the initial investment over a given period of time.
Question 2
An ordinary annuity is a sequence or chain of equal **payments** on an...

3 Pages(750 words)Coursework

...Time **Value** of **Money** Affiliation “Take heed if your are buying or selling annuities”, is an article that provides an imformatic look at the ever changing regulatory landscape, and its relation to annuity products. It also elaborates on the responsibilities a fiduciary has when it comes to selling these products to a client. The article discusses the criteria, legal factors and issues an attorney has to consider as a trust fiduciary on annuity investments in the US.
Various federal and state rules have been trying to narrow down the sale of equity indexed annuities to suitable investors. It is important that lawyers should note the key issues in annuity sale and investment. The relationship between a trustee and the beneficiaries... that the...

3 Pages(750 words)Essay

...**Present** **Value** **Present** **Value** Part I A. **Present** **value**, PV = C1 r)n = 15,000 0.07 14,018.69The **present** **value** = $14,018.69
At 4%:
**Present** **value** = 15,000 / (1+0.07)1
= 14,423.08
B. Account A, C= 6,500 in 1 year at 6%:
**Present** **value** = 6,500 / (1+0.06)1
= $6,132.08
Account B, C=12,600 in 2 years at 6%:
**Present** **value** = 12,600 / (1+0.06)2
= $11,213.96
C. Year 1 = $49,000,000, Year 2 = $61,000,000 and Year 3 = $85,000,000
Total = $195,000,000
**Present** **value** = 195,000,000 /...

3 Pages(750 words)Assignment

...The concept of net **present** **value** is an analytic tool that can help both corporations and novice investors. From an investor standpoint the use of netpresent **value** is very useful because net **present** **value** takes into consideration the time **value** of **money**. Due to inflation **money** depreciates over time. A person has $100 saved up in a cookie jar and leaves it there for five years will lose **money** because those $100 will not have the same purchasing power five years into the future. Using the net **present** **value** table can help a person determine how much interest...

1 Pages(250 words)Essay

...**Money** and **Payments** **Money** and **Payments** Question **Payment** systems have gone from physical transactions to electronic ones within a span of two decades. Both types of **payments** undergo protocols and processes. However, the electronic **payment** system has undergone rapid and efficient transitions that allow for quicker protocols and processes. Quicker protocols and processes led to the decrease of transaction costs over time. Before the electronic **payment** system, commercial law required both ends of a transaction to deal with each other individually by transferring cash or assets physically (Mastrianna, 2012)....

1 Pages(250 words)Coursework