Problem Day Time Value of Money 2.6.12 v3.1 - clean

Problem Day Time Value of Money 2.6.12 v3.1 - clean -...

Info iconThis preview shows pages 1–19. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Problem Day: Time Value of Money Housekeeping Items • Horizon POW Quiz due Tuesday at 10pm • EXAM 1 – Feb 16th and 17th o For your test score: SEE INSTRUCTOR • Ch. 15 Reading Quiz due Wednesday morning at 11am • Course email: [email protected] Exam Practice Questions • On blackboard under “Exam Practice Questions” • Take the quizzes as many times as you like – they DON’T count towards your grade • Questions and answers are in a slide deck below the quiz • Do the quiz first – looking at the answers first is less effective Today’s Agenda • Opening Prayer • Set up the Calculator • Basic Problems • Annuities o Annuities Due o Deferred Annuities • Tales from a Financial Analyst • Forecasting Sales 25% of Sales ! Hockey Stick POW Help: Aging Exhibit 5 Aging of A/P to Horizon Entertainment Symphony Systems Sound Average Amount Amount 145 days 3,190 * 105 days 38,884 30,656 75 days 19,975 56,815 45 days 85,326 34,607 14 days 73,122 14,170 $220,497 $136,248 *Disputed What is A/P Aging? What is A/R Aging? Set up the Calculator • Clear All Set up the Calculator • Clear All • Make sure Beg/End mode is correct o Clear All does NOT delete BEGIN Mode!!! Set up the Calculator • Clear All before EVERY problem • Make sure Beg/End mode is correct o Clear All does NOT delete BEGIN Mode!!! • Payments per year o Set to 1 Payment per year Set up the Calculator • Clear All before EVERY problem • Make sure Beg/End mode is correct o Clear All does NOT delete BEGIN Mode!!! • Payments per year • Number first, then top buttons Symbols PV = Present Value I/PY = Interest rate (Some books use r) n = Number of time periods PMT = Payment, Annuity FV = Future Value t Time Value of Money • What is the point? • The Key: • Good to know for: o Mortgages o Car Loans o “A dollar today is worth more than a dollar tomorrow” Future Value of $100 at 10% Year Beginning Amount Interest Earned Ending Amount 1 $100.00 10.00 $110.00 2 110.00 11.00 121.00 3 121.00 12.10 133.10 4 133.10 13.31 146.41 5 146.41 14.64 161.05 Total interest 61.05 Interest on Interest Illustration Value in 10 years of $100 received today at 8% interest Formula: Excel : Calculator: Enter 10 as n or number of periods...
View Full Document

This note was uploaded on 02/17/2012 for the course FINANCE 301 taught by Professor Jimbrau during the Winter '12 term at BYU.

Page1 / 39

Problem Day Time Value of Money 2.6.12 v3.1 - clean -...

This preview shows document pages 1 - 19. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online