Homework
Complete a minimum of 1,000 words (total homework) and three scholarly sources.
Textbook: Melicher, Ronald W., and Edgar A. Norton Introduction to Finance: Markets, Investments, and Financial Management, Enhanced eText. Wiley Global Education US, 2016. [Savant Learning Systems].
I. Why does money have a "time value"?
II. There is a saying that "time is money". What is meant by that? How is this the same - or different - than the idea of the time value of money?
III. Find the future value of $5,000 invested in each of the following situations:
i. 5 percent for 10 years
ii. 7 percent for 7 years
iii. 9 percent for 4 years
IV. What is the present value of $5,000 to be received in each of the following situations:
i. at end of 10 years with a 5% discount rate.
ii. at the end of 7 years when the appropriate interest rate is 7%.
iii. at the end of 9 years using an interest rate of 9%.
V. What is the return on an investment (ROI) that costs $500 today and will return $800 at the end of 4 years?
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.