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Question

Complete the Time Value of Money Worksheet.

Post your Time Value of Money Worksheet as a Microsoft® Word® attachment.

Use the Bankrate Compound Interest Calculator and input personal figures, changing the interest rate and the compounding of the interest rate

1. What is the definition of Time Value of Money? Please define present and future value.

2. How is simple interest calculated? Provide an example of how it would be calculated.  For example, you might use your student loan or a car loan to show this calculation

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Solution Preview

The definition of Time Value Of Money is  A dollar earned today is value more than a dollar earned in the tommorow. In economics, it is the prospect cost of passing up the obtaining potential of a dollar today. The plan that money obtainable at the present time is valued more than the same total in the future due to its obtainable earning capacity. It claims that, provided amount can earn profit, any amount of money is value more the sooner it is obtained

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