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Elementary,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 356 Weeks Ago |
| Questions Answered: | 20103 |
| Tutorials Posted: | 20155 |
MBA, PHD
Phoniex
Jul-2007 - Jun-2012
Corportae Manager
ChevronTexaco Corporation
Feb-2009 - Nov-2016
Question description
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Please answer both questions and use
APA style citations.
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1.
Why is the time value of money concept important? In what quantitative decisions might the time value of money be used? How do you apply the time value of money concept to make decisions in your personal life? How might you use the Time Value of Money concept as a quantitative reasoning tool in business?
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2.
The formula to calculate the value of $1 put into savings today is fv = pv*((1+i)^n). The variables are fv = future value, pv = present value, i = interest rate per period, and n = the number of periods. In the formula, n is an exponent. What does the exponent in this case state that you need to do mathematically to the (1 + i) segment of the formula? Select an interest rate and number of periods—be sure your numbers are different from other students who already answered this question—to calculate the future value of $1. How much money would you have at the end of the period you determined if you invested $1 today (pv)?
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Any questions, let me know.
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