Value of Money Essay

Pages: 3 (706 words)  ·  Bibliography Sources: 4  ·  File: .docx  ·  Level: College Senior  ·  Topic: Economics

This can help a financial manager explain why some so-called discretionary funds should be redirected from present-day expenses to savings. This is an important lesson, because many people assume that they can begin their retirement savings when they make more money, without considering that inflation costs and other cost-of-living adjustments (growing children, college accounts, increased health expenditures) may already require devotion of those extra resources, and that the later they wait to do their saving, the greater the amount of present-day dollars that they will have to save in order to have the same amount of money at a projected target date. A financial manager must be able to explain this concept to people, and to get them to buy into this concept without feeling penalized by savings.

3) Calculate the future value of the following showing work:

PV=FV / (1+r) t

PV * (1+r) t = FV

FV= PV * (1+r) t

a. $54,298 if invested for five years at a 7% interest rate

FV= PV * (1+r) t

FV= $54,298 * (1+.07)5 = $76,155.75

b. $99,112 if invested for three years at a 4% interest rate

FV= PV * (1+r) t

FV= $99,112* (1+.04)3 = $111,487.52

c. $121,124 if invested for seven years at a 2% interest rate

FV= PV * (1+r) t

FV= $121,124 * (1+.02)7= $139,236.78

d. $929,129 if invested for ten years with a .9% interest rate

FV= PV * (1+r) t

FV= $929,129 * (1+.009)10= $1,016,219.86

Buy full Download Microsoft Word File paper
for $19.77
4) Calculate the present value of the following showing work

a. $455,126 to be received three years from now with a 4% interest rate

PV=FV / (1+r) t

PV=$455,126 / (1+.04)3= $404,605.36

b. $289,231 to be received five years from now with a 5% interest rate

PV=FV / (1+r) t

PV=$289,231 / (1+.05)5 =$226,620.06

c. $921,000 to be received two years from now with a 12% interest rate

PV=FV / (1+r) t

PV=$921,000 / (1+.12)2=$734,215.56

Essay on Value of Money I Would Assignment

d. $278,111 to be received eight years from now with a 1% interest rate

PV=FV / (1+r) t

PV=$278,111 / (1+.01)8=…
NOTE:  We realize that this preview is short, but the Microsoft Word file that you download will contain all 3 page(s) of perfectly formatted text.


Two Ordering Options:

Which Option Should I Choose?
1.  Buy full paper (3 pages)Download Microsoft Word File

Download the perfectly formatted MS Word file!

- or -

2.  Write a NEW paper for me!✍🏻

We'll follow your exact instructions!
Chat with the writer 24/7.

Money Laundering What Is the Deviance/Crime Research Paper

Money and Banks. The Book Essay

Value of Money Term Paper

Money Laundering in Illegal Drug Trade and Illegal Gambling Term Paper

Money Laundering the First Against Term Paper

View 200+ other related papers  >>

How to Cite "Value of Money" Essay in a Bibliography:

APA Style

Value of Money.  (2012, January 30).  Retrieved March 30, 2020, from

MLA Format

"Value of Money."  30 January 2012.  Web.  30 March 2020. <>.

Chicago Style

"Value of Money."  January 30, 2012.  Accessed March 30, 2020.