Problem:
The time value of money is an important topic in finance. It essentially postulates that $1 today is worth more than $1 received tomorrow. Let's discuss a few topics around this concept:
1.) How much would $1,000,000 due in 100 years be worth today if the discount rate was 5%? If the discount rate was 10%. Discuss how and why the results are different at the different interest rates.
2.) If you wanted to have $1,000,000 in savings at retirement, how much would you need to save each year over the next 30 years if you could earn 5% annually on your savings? Show your all work and describe in detail.