An important concept in finance is the time value of money

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Reference no: EM131952975

An important concept in finance is the Time Value of Money, or TVM. The Time Value of Money can be difficult at first but as you become familiar with the concept it should become "more" understandable.

MS Excel has many of the formulas covered in this class within its functions. For this DQ let's explore some of the functions. Open MS Excel and click on the fx. You can also access the formulas (functions) from the Formulas tab. If you type in PV or FV in the search box you should find the present and future value functions.

Experiment with the PV and FV functions to address the following...

What will the US debt be in the future? You pick the formula to use, time frame and the rate. (this is what needs to be calculated)

Use the site below to find the current debt.

As always construct a DQ response that stimulates further discussion. For example, explain why you selected your rate? Is the debt totally out of control? What might cause the rate to change? How could you apply TVM concepts to other topics in finance?

Hopefully everyone has access to Excel. If not you can find TVM calculators on the World Wide Web.

Reference no: EM131952975

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