Information about value of money

Reference no: EM1328859

Shanghai Winters, one of BC's biggest customers, has requested a loan with favorable terms. Sheila and Ed decide to offer this customers a $70,000 five year note receivable. You recommend that since this is your best customer, they offer a 4% interest rate rather than the 7% going rate.

Using your knowledge of the time value of money, offer them guidance in each situation. Include the following in your answer:

What TVM concept (s) is represented in the situation?

What is the value of the money represented by the situation?

How did you arrive at the value?

Reference no: EM1328859

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