Homework
Time value analysis has many applications. For example, you use time value of money concepts in valuing stocks and bonds, establishing loan payment schedules, and deciding whether or not to invest in a new plant and/or equipment. As one of the more important topics in finance, time value of money underlies many other concepts covered in this course, so it is very important to not only understand the concept, but also to be able to compute time value of money problems that involve compounding and discounting skills.
Task:
Think of four examples in your organization or from your personal life, or a combination of both, that demonstrate the following:
1) Present Value (PV) of a lump sum
2) Future Value (FV) of a lump sum
3) Present Value (PV) of an annuity
4) Future Value (FV) of an annuity
Explain your examples, including why they are relevant to your organization and/or personal life. Provide a rationale for interest or discount rates used in your examples.
Format your homework according to the following formatting requirements:
(1) The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
(2) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
(3) Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.