TIME VALUE OF MONEY Future Values and Compound Interest Interest is the price paid for the use of borrowed money You have $100 invested in a bank account. Suppose banks are currently paying an interest rate of 6 percent per year on deposits. So after a year, your account will earn interest of $6: Interest = interest rate × initial investment = .06 × $100 = $6 You start the year with $100 and you earn interest of $6, so the value of your investment will grow to $106 by the end of the year:
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TIME VALUE of MONEY Exercises Author: Luigi V. TAVA Copyright SDA Bocconi revised 2004.10 EMQ 901 1 1) For a loan of 9.2 estimate the future refund value (principal, interest, total) with simple interest: a) yearly rate 5%, for 6 years and 4 months b) yearly rate 8%, for 7 years, 2 months and 15 days 2) With a starting investment of 3.65 how long does it take to have a final total value of 4.779 with a 5.2% yearly rate, simple interest ? 3) 10 years ago you deposited 15.6 in a bank account
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Time Value of Money Table of Contents Abstract………………………………………………………………………………3 Time Value of Money………………………………………………………………..4 Future Value and Present Value…………………………………………………......5 Challenges…………………………………………………………………………...6 Summation…………………………………………………………………………..8 References…………………………………………………………………………...9 Abstract Time value of money operations are the backbone of financial decisions in business. The basics of their operation lie in interest calculations that can be used to determine
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thought that by putting money to the side, under the mattress or, even in the cookie jar that eventually one day they would be rich. Well not to spoil the surprise but the years it would take to make one rich by those means are far off and nothing in between. This is where Time Value of Money comes in. Time Value of Money is the idea that a dollar today is worth more than a dollar in the future, even after the adjustments of inflation, interest rates, and appreciation until the time come for the dollar
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Business Report “Examining the causes of Failure” On Vedanta Alumina Lanjigarh Project Submission date 13th December, 2010 Submitted bySId- 7636657 1 Executive Summary – MOE&F, INDIA rejected the application for Stage-2 (Final) Environmental Clearance and withdrew all the previous clearances for mining in Niyamgiri Hills given to Vedanta Alumina Ltd. (VAL) a subsidiary of Sterlite Industries INDIA Ltd. (SIIL) citing various facts and reasons. This report provides an in depth
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3. Time Value of Money II- tutorial questions (tutorial in week 4) | 1. You are in first year at university and are planning a trip to Vietnam when you graduate at the end of 4 years. You plan to save the following amounts annually, starting today: $625, $700, $700 and $750. If the account pays 5.75 per cent annually, how much will you have at the end of 4 years? 2. Stephanie Watson plans to adopt the following investment pattern beginning next year. She will invest $3125 in each of the
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NILAI WAKTU UANG (TIME VALUE OF MONEY) Konsep Dasar : Bahwa setiap individu berpendapat bahwa nilai uang saat ini lebih berharga daripada nanti. Sejumlah uang yang akan diterima dari hasil investasi pada akhir tahun, kalau kita memperhatikan nilai waktu uang, maka nilainya akan lebih rendah pada akhir tahun depan. Jika kita tidak memperhatikan nilai waktu dari uang, maka uang yang akan kita terima pada akhir tahun depan adalah sama nilainya yang kita miliki sekarang. Contoh 1 : Uang sekarang
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The Pakistan Credit Rating Agency Limited STRUCTURED FINANCE RATING KARACHI ELECTRIC SUPPLY COMPANY LIMITED APRIL 2012 The Pakistan Credit Rating Agency Limited STRUCTURED FINANCE KARACHI ELECTRIC SUPPLY COMPANY LIMITED REPORT CONTENTS Summary Report Detailed Report: PAGE 1 2 2 4 7 Rating Profile Instrument Structure Assessment ANNEXURES BoD Profile Standard Rating Scale I II April 2012 www.pacra.com STRUCTURED FINANCE The Pakistan Credit Rating
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beneficial to pay off the debt vs. putting money in a savings account? Explain the pros and cons of either option. A benefit of paying off the debt is that you will not have to keep paying finance charges. For example a $ 10,000 debt with a 14% interest rate will cost you $ 6,889.60 in interest over the course of a four year term. One benefit to paying these charges if you pay them on time it will help your credit score stay higher. One benefit to putting your money in a savings account is that it is
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would have 5,414.28. If you pay the minimum amount monthly on a credit card all you're doing is hurting yourself. If you put your money in a savings account you're only going to gain so much money per month, way less than what you're losing if your making a minimum monthly payment on your credit card. By paying off your credit card much quicker instead of putting money in savings, you're saving all that interest you won't have to pay on your credit card. If you pay minimum on your credit card that's
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