Why is it important for business managers to be familiar

Reference no: EM13391822

1. Why do we say money has time value?

2. Why is it important for business managers to be familiar with time value of money concepts?

3. Define Present Value.

4. Define Future Value.

5. What are present value and future value interest factors? (as in PVIF and FVIF)

6. (Calculating future value) You buy a 6 year, 8% CD for $1,000. Interest is compounded annually. How much is it worth at maturity?

7. (Calculating present value) What's the present value of $1,000 to be received in 8 years? (Your required rate of return is 7% a year.)

8. (Calculating the rate of return) A friend promises to pay you $600 two years from now if you loan him $500 today. What interest rate is your friend offering you?

9. (Calculating the future value of an annuity) If you invest $100 a year for 20 years at 7% annual interest, how much will you have at the end of the 20th year?

10. (Calculating the present value of an annuity) How much would you be willing to pay today for an investment that pays $800 a year at the end of the next 6 years? (Your required rate of return is 5% a year.)

Reference no: EM13391822

Questions Cloud

What style of leadership is the most efficient in leading : what style of leadership is the most effective in leading an organization? is it important to be well-liked or are

In the first advertising campaign for carlson hotels its : in the first advertising campaign for carlson hotels its commitment to service was extolled and a loyalty program that

Build the strategy map for each company to show where they : choose two companies in the same industry - one with a cost leadership strategy and one with a differentiation

Which of the given types of organizational structure would : 1 as a manager you want to create a project team to plan and implement a project designed to meet the demands of

Why is it important for business managers to be familiar : 1. why do we say money has time value?2. why is it important for business managers to be familiar with time value of

Summarize key milestones involved in the past and present : as a health administrator your hospital has tasked you with reporting the general nature of health care administration

A mental image of a possible and desirable future state of : i ruby recently accepted a job with a large insurance firm as an internal auditor. ruby has found that her job is

Estimate the effect of the system on gdp of foreign nation : select a country that has universal health care system provided by that country and provide some background information

The real risk-free rate is 3 and inflation is expected to : the real risk-free rate is 3 and inflation is expected to be 3 for the next 2 years. a 2-year treasury security yields

User Account

All Pages