Use of tvm in investment or loan decision


Take this chance to think the subject under conversation and prepare a response which answers all the queries and fully illustrates your understanding of topic. To show your knowledge, take time to give confirmation that illustrates how you prepare the answers by mentioning sources to rationalize your response.

Advertised monthly lending rate of= 0.9% is about= 11% per year. This dissimilarity between the advertised rate and annualized rate is based on finer TVM details which may be overlooked by borrowers. Describe how you may have utilized TVM in latest investment or loan decision and describe some TVM details which may have been concerned in your transaction.

If you haven’t utilized TVM in past financial transactions what practical TVM application would you wait for to meet in future.

Requirements

Max Pages: 1
Other Requirements: 3/4 page to 1 page explaining TVM

2) At the 7th birthday party your daughter she informs you that she wishes to go to Concordia when she grows up. You estimate it will cost you= $30,000 per year for her to be there a four year program. You make a decision to begin putting money into the account which pays 11% annually that are applicable rates for years to come. You will start to make deposits directly on her birthday and continue this practice until her 17th birthday. She starts college (and the first tuition payment is payable) on her 18th birthday. Second is to be paid on her 19th birthday and etc. How large are annual deposits you make to this account?

i) $4,286
ii) $4,758
iii) $5,281
iv) $32,778
v) None of the provided answers is right.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Use of tvm in investment or loan decision
Reference No:- TGS014047

Expected delivery within 24 Hours