User Account

All Pages

Time value of money concept

Assignment Help Finance Basics
Reference no: EM133120932

Assume that your aunt recently gifted you $12,000. You are both excited and worried about what to do with the money. You evaluated your options and came up with five possible uses:

  1. Pay off credit card debt,
  2. Set aside money for a major investment, such as a car or house,
  3. Invest the money in a retirement account,
  4. Use the money for career training/education, or
  5. Donate funds to a charitable organization that serves the needy within the community.

Which option would you choose? Go through each option and explain how the time value of money concept affects each option. How does the time value of money concept play a part in your final decision about the use of the $12,000 gift? Explain.

Reference no: EM133120932

Questions Cloud

Truck transporting hazardous materials : Suppose you can take one of two summer jobs. In the first job as a flight attendant, with a salary of $5,000, you estimate the probability you will die is 1 in
Reasons for the stock market strong performance : Stock buybacks are back. Companies in the S&P 500 repurchased $234.5 billion in shares during the third quarter of 2021, topping the previous record of $223 bil
Frictions in capital markets : G&G Limited has $100 millions in cash and the following capital structure: Security Beta Total Market Value ($ millions) Debt =0(beta ßd) 40 Common stock 1.20(b
What coupon rate should be applied to the new bonds : Vitality Vancouver Inc. (VVI) has recently raised debt capital through long-term financing. The bond indenture includes issuing 8% coupon bonds on the market th
Time value of money concept : Assume that your aunt recently gifted you $12,000. You are both excited and worried about what to do with the money. You evaluated your options and came up with
What is the necessary and valid data : What is the external context that might affect the decision? Who are the main characters and protagonists of the case study, what are their functions?
What is the return on investment on google projects : Google reinvests 30% of its earnings every year and pays out 70% of its earnings. What is the growth rate of Google's earnings as implied by its price?
What must the coupon rate be on these bonds : DMA Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, What must the coupon rate be on these bonds
What is the break-even point in sales dollars : Total monthly fixed costs are expected to be $15,000. What is the break-even point in sales dollars at the expected sales mix

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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