Explain how the present value of money and future value

Reference no: EM133264748

Time Value of Money:

Question 1- Using the rules of time travel as it relates to cash flows, explain how the present value of money and future value of money can be fungible?

Question 2- In a similar manner to the previous question, explain how the present value of annuity and the future value of annuity are fungible.

Question 3- Time value of money comes from the power of compounding. Explain in detail how a lower interest rate loan requiring more frequent repayments may be more expensive than some loans charging higher interest rates but less frequent loan repayments?

Question 4- How will you analytically compare and evaluate the following: Bank of America's offer to double your savings in 9 years, Citibank's offer of tripling your savings in 16 years, and US Bank's offer of quadrupling your savings in 19 years. Which offer will you choose and why?

Reference no: EM133264748

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