Part 1: Complete the following table by inserting your responses to
the questions. Cite any sources you use.
Define the time value of money.
Provide a real-world example for the time value of money.
Why is time such an important factor in financial matters?
How would you use the time value of money to your financial
benefit?
Part 2: Complete the following tables by calculating the ratios.
Amount
Compounding period
Rate of interest
Present value
$100,000
Annual
6% for 10 years
$70,000
Annual
4% for 15 years
Initial cost of investment
Periods of useful life
Estimated annual net cash inflow generated
Look-up table value