Assignment:
Tasks:
1. Share any professional and personal decisions you made in which the concept of time value of money was utilized and include the following:
• The specific decision for which you used time value of money.
• The manner in which you applied the concept.
• The tools you used to complete the analysis, including the timeline.
• An explanation of how using the concept helped you reach a more accurate decision than if time value of money had not been utilized.
Determine the present value of $75,000 discounted at 6% over 6 years.
Present Value
Amount to be discounted
Annual interest rate
Number of years
Present Value
Determine the future value of $100,000 invested today at 4% for 5 years.
Future Value
Amount invested today
Annual interest rate
Number of years
Future Value
Determine what annual payment will need to be invested if you have $10,000 today and want it to grow to $100,000 over 20 years at 4.5%.
Annual Payment
Amount invested today
Annual interest rate
Number of years
Amount to end up with
Annual Payment