Understanding The Time Value of Money

Question Description

Money has different values based on time. Money in your pocket has a current value, but money owed to you has a varying value based on how sure it is that you will receive it and when. It is possible to estimate its value. In this assignment, you will analyze the value of money on the basis of this Week’s learning.

Review Understanding The Time Value of Money to attain more information on how the value of money is based on time.

Find the following values for a lump sum assuming annual compounding:

• The future value of \$500 invested at 8 percent for 1 year
• The future value of \$500 invested at 8 percent for 5 years
• The present value of \$500 to be received in 1 year when the opportunity cost rate is 8 percent
• The present value of \$500 to be received in 5 years when the opportunity cost rate is 8 percent
• Analyze present and future values and their implications for the balance sheet and the budget of an organization.

Submission Details:

• cite your sources in your work and provide references for the citations in APA format.
• Your assignment should be addressed in a 2- to 3-page document.

Attached.

Time value of money
by Hal .

Submission date: 20-Feb-2018 01:36AM (UT C-0500)
Submission ID: 918540841
File name: the_time_value_of _money.docx (38.04K)
Word count: 645
Character count: 3378

Time value of money

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Instructor

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Time value of money
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Running head: TIME VALUE OF MONEY

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Time Value of Money
(Name)
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TIME VALUE OF MONEY

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Time Value of Money
Theoretical framework

The time value of money results from the idea tha...

Robert__F (44948)
Boston College
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