{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 3 - Chapter 3 Chapter Objectives Calculate the...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 3 Chapter Objectives Calculate the future value of a dollar amount that you save today Calculate the present value of a dollar amount that will be received in the future Calculate the future value of an annuity Calculate the present value of an annuity The Importance of the Time Value of Money The value of money is influenced by the time it is received The value of a given amount of money is generally greater the earlier it is received The earlier you start saving, the more quickly your money can earn interest and grow Future Value of a Single Dollar Amount Compounding: the process by which money accumulates interest To determine the future value of an amount of money you deposit today, you must know: The amount of your deposit today The interest rate to be earned on the deposit The number of years the money will be invested Future value interest factor (FVIF): a factor multiplied by today’s savings
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern