Problem 1: What do we mean by the "time value of money" and why is this concept important to making business decisions?
Problem 2: What is the difference between Present Value and Future Value? Provide examples.
Problem 3:
a. Find the Future Value 2 year(s) from now of an investment of $447 today if the interest rate is 13.84% compounded Weekly.
b. Find the Present Value of a 15 year annuity of $371 per six months if the interest rate is 18.57% compounded Semiannually.
c. Find the Future Value 14 year(s) from now of an investment of $979 today if the interest rate is 18.23% compounded Daily.
d. Find the Present Value of a 18 year annuity of $943 per week if the interest rate is 13.95% compounded Weekly.