Discuss the application of time value of money

Assignment Help Financial Accounting
Reference no: EM133432635

Question: What is time value of money?

Why is it important in personal financial planning?

Discuss the application of time value of money concept in personal financial planning with examples.

i. How much would you have in savings if you kept $200 on deposit for eight years at 8%, compounded annually?

ii. How much would you have in savings if you kept $200 on deposit for eight years at 8%, compounded semi-annually?

iii. How much would you have in savings if you kept $200 on deposit for eight years at 8%, compounded quarterly?

iv. How much would you have in savings if you kept $200 on deposit for eight years at 8%, compounded monthly?

Reference no: EM133432635

Questions Cloud

Critically evaluate the relevance of the external auditing : Critically evaluate the relevance of the external auditing function in helping an effective implementation of the CG regulatory framework
Summarize the key points from the video in terms : Summarize the key points from the video in terms of what you have learned regarding segmenting and targeting markets. In your summary, reflect on, and explain
What are your personal opinions about graffiti : What are your personal opinions about graffiti? How has your personal experience formed these opinions?
Developing a cybersecurity strategy important : How you would convince the Director of a medical facility that developing a cybersecurity strategy important?
Discuss the application of time value of money : What is time value of money? Why is it important in personal financial planning?
Find the instantaneous rate of change of demand : Find the instantaneous rate of change of demand with respect to price when the price is $5.61. Round to the nearest hundredth (2 decimal places)
How functions would be essential for business continuity : Describe how these functions would be essential for business continuity and concurrency control.
Artists frequently juxtapose unlike images : We will discuss collages. Artists frequently juxtapose unlike images or textures next to each other through collage to new meaning
How you support your opinion is paramount : Defend a position on whether studying international finance is important or not. Neither position is right or wrong, but how you support your opinion

Reviews

Write a Review

Financial Accounting Questions & Answers

  What amount of loss on realization be allocated to white

After non-cash assets are sold and all liabilities are paid, there is a cash balance of 130,000. What amount of loss on realization should be allocated to white

  Prepare the march 31 general journal entry for the adjusting

The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $21,000 would be incurred.

  Prepare the entry to record the exchange of assets by global

Prepare the entry to record the exchange of assets by Global Co. Prepare the entry to record the exchange of assets by Rijo Inc.

  What is the present value

Question - What is the present value of a $1,000 per year annuity for five years at an interest rate of 12 percent

  What is the total cost of the machine

Orange Company uses many kinds of machines in its operations. Labor of testing machine 40,000. What is the total cost of the machine

  Prepare the t accounts to illustrate the impact

Prepare the T accounts to illustrate the impact of this purchase on the general ledger. You will only need to show Balance Sheet accounts.

  How much should invest at the beginning of each year

She estimates that the car would cost $2,500,000.00. Given that the existing interest rate is 12 %, how much money should she invest now?

  What is libscomb cash cycle in days

Libscomb also has $524,461 of inventory, $539,307 of accounts receivable, and beginning and ending of year. What is Libscomb's Cash Cycle (in days)?

  Compute service revenue and operating expenses

Kelly Company had cash receipts from customers in 2014 of $150,220. Cash payments for operating expenses were $97,860. Kelly has determined that at January 1, accounts receivable was $13,810, and prepaid expenses were $18,340. At December 31, account..

  What is the cost of debt for a company

What is the cost of debt for a company whose debt at 11% has a nominal value of 1,000, is trading at 1,037.9 and has a life of five years

  What the option to abandon operations will be

What the option to abandon operations will be? More valuable if the current present value of the expected cash flows from operations are higher.

  Determine the total? paid-in capital-ariba corporation

Ariba Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $ 51,000.

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!

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