Assignment Requirements for week 3
Complete: a minimum of 1,000 words (total assignment) and three scholarly sources.
Melicher, Ronald W., and Edgar A. Norton Introduction to Finance: Markets, Investments, and Financial Management, Enhanced eText. Wiley Global Education US, 2016. [Savant Learning Systems].
1. Why does money have a time value?
2. There is a saying that time is money. What is meant by that? How is this the same or different than the idea of the time value of money?
3. Find the future value of $5,000 invested in each of the following situations:
a. 5 percent for 10 years
b. 7 percent for 7 years
c. 9 percent for 4 years
4. What is the present value of $5,000 to be received in each of the following situations:
a. at end of 10 years with a 5% discount rate.
b. at the end of 7 years when the appropriate interest rate is 7%.
c. at the end of 9 years using an interest rate of 9%.
5. What is the return on an investment (ROI) that costs $500 today and will return $800 at the end of 4 years?