Time Value of Money - 5284 Words

12/9/2012 Chapter 9 The Time Value of Money 1 Chapter 9- Learning Objectives ïÆ' ¼ Identify various types of cash flow patterns (streams) that are observed in business. ïÆ' ¼ Compute (a) the future values and (b) the present values of different cash flow streams, and explain the results. ïÆ' ¼ Compute (a) the return (interest rate) on an investment (loan) and (b) how long it takes to reach a financial goal. ïÆ' ¼ Explain the difference between the Annual Percentage Rate (APR) and the Effective Annual Rate (EAR), and explain when each is more appropriate to use. ïÆ' ¼ Describe an amortized loan, and compute (a) amortized loan payments and (b) the balance (amount owed) on an amortized loan at a specific point during its life. Principles of Finance†¦show more content†¦After 3 years: FV3 = PV(1 + r)3 = $700 (1.10)3 = $931.70 After 2 years: FV2 = PV(1 + r)2 = $700 (1.10)2 = $847.00. In general, FVn = PV (1 + r)n Principles of Finance 5e, 9 The Time Value of Money  © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 Three Ways to Solve Time Value of Money Problems ïÆ' ¼Use Equations ïÆ' ¼Use Financial Calculator ïÆ' ¼Use Electronic Spreadsheet Principles of Finance 5e, 9 The Time Value of Money  © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 5 12/9/2012 Numerical (Equation) Solution FVn = PV(1+ r)n PV = $700, r = 10%, and n =3 FVn = $700(1.10)3 = $700(1.3310) = $931.70 Principles of Finance 5e, 9 The Time Value of Money  © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 Financial Calculator Solution FVn = PV(1+ r)n There are 4 variables. If 3 are known, the calculator will solve for the 4th. Principles of Finance 5e, 9 The Time Value of Money  © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole orShow MoreRelatedTime Value of Money1028 Words   |  5 Pagestoward understanding the relationship between the value of dollars today and that of dollars in the future is by looking at how funds invested will grow over time. This understanding will allow one to answer such questions as; how much should be invested today to produce a specified future sum of money? Time Value of Money In most cases, borrowing money is not free, unless it is a fiver for lunch from a friend. Interest is the cost of borrowing money. An interest rate is the cost stated as a percentRead MoreTime Value of Money1033 Words   |  5 PagesTime Value of Money (TVM), developed by Leonardo Fibonacci in 1202, is an important concept in financial management. It can be used to compare investment alternatives and to solve problems involving loans, mortgages, leases, savings, and annuities. TVM is based on the concept that a dollar today is worth more than a dollar in the future. That is mainly because money held today can be invested and earn interest. A key concept of TVM is that a single sum of money or a series of equal,Read MoreTime Value of Money967 Words   |  4 PagesTime Value of Money The time value of money relates to many activities and decision in the financial world. â€Å"Understanding the effective rate on a business loan, the mortgage payment in a real estate transaction, or the true return on an investment depends on understanding the time value of money† (Block, Hirt, 2005). The concept of time value of money helps determine how financial assets are valued and how investors establish the rates of return they demand. Many different types of companiesRead MoreTime Value of Money2180 Words   |  9 PagesFinance Ââ€" Time Value of Money We earn money to spend it and we save money to spend it in the future. However, for most people spending money in the present time is more desirable since the future is unknown. We can gratify the desire to spend money today rather than in the future by knowing the basic law in finance Ââ€" time value of money. This means that a dollar today is worth more than a dollar at some time in the future. Unfortunately, people very often want to buy things at the present time whichRead MoreTime Value of Money3904 Words   |  16 PagesTime Value of Money Problems 1. What will a deposit of $4,500 at 10% compounded semiannually be worth if left in the bank for six years? a. $8,020.22 b. $7,959.55 c. $8,081.55 d. $8,181.55 2. What will a deposit of $4,500 at 7% annual interest be worth if left in the bank for nine years? a. $8,273.25 b. $8,385.78 c. $8,279.23 d. $7,723.25 3. What will a deposit of $4,500 at 12% compounded monthly be worth at the end of 10 years? a. $14,351.80 b. $14,851.80 c. $13,997.40 d. $14Read MoreTime Value of Money2092 Words   |  9 PagesTime Value of Money The time value of money (TVM) or, discounted present value, is one of the basic concepts of finance and was developed by Leonardo Fibonacci in 1202. The time value of money (TVM) is based on the premise that one will prefer to receive a certain amount of money today than the same amount in the future, all else equal. As a result, when one deposits money in a bank account, one demands (and earns) interest. Money received today is more valuable than money received in the futureRead MoreTime Value of Money2124 Words   |  9 PagesTime Value of Money: Simple Interest versus Compound Interest Outline I. Applications of Time Value of Money 1.1 Example One 1.2 Example Two 2. Interest 2.1 What is Interest? 2.2 Three Variables of Interest 1. Principal 2. Interest Rate 3. Time 2.3 Why is Interest Charged? 3. Simple Interest 3.1 What is Simple Interest? 3.2 Simple Interest Formula 4. Compound Interest 4.1 What is Compound Interest? 4.2 Compound Interest Formula Read MoreTime Value of Money712 Words   |  3 Pageswill pay the bank over the life of the loan? $123,945.04 4. What is the effective rate of interest on a CD that has a nominal rate of 7.25 percent with interest compounded monthly? EAR = (1+.0725/12)^12 – 1 = 7.5% 5. What is the future value of $4,950 placed in a saving account for six years if the account pays 3%, compounded quarterly? PV = 4,950 N = 6 x 4 = 24 I =3/4 = .75% Pmt = - FV = $5,922.24 6. Your firm, Vandelay Industries, has just leased a $32,000 BMW for youRead MoreTime Value of Money and Present Value1154 Words   |  5 Pagescollege 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $23,000 per year per child, payable at the beginning of each school year. The annual interest rate is 5.5 percent. How much money must you deposit in account each year to fund your children’s education? Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college Solution: Cost of 1 year atRead MoreTime Value of Money Essay708 Words   |  3 PagesTime Value of Money Project Show all your work! Name _________________ 1. If Mrs. Beach wanted to invest a lump sum of money today to have $100,000 when she retired at 65 (she is 40 years old today) how much of a deposit would she have to make if the interest rate on the C.D. was 5%? a. What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%. b. What would Mrs. Beach have to deposit if she

Simple Lever Verb Conjugations in French

In order to say to lift or to raise in French, you will use the verb  lever. Now, if you want to say lifted or will lift, then a conjugation is necessary. This is not one of the easiest French verbs to change to the present, future, and past tense, but a quick lesson will get you started. Conjugations Verb conjugations  are required to change the ending so it matches the tense of the verbs action. We do the same in English by adding -ed  to form the past tense or -ing  to say that something is happening right now.   Its a bit more complicated in French, however. Rather than using the same ending no matter if were talking about me, you, we, or they doing something, the ending changes with every  subject pronoun  as well as each tense. Unfortunately, that means you have more words to memorize. Rest assured, it does get easier with the more conjugations you learn. Lever  is a  stem-changing verb  and it follows a pattern found in other verbs that end in -e_er. Essentially, in the present and future forms, the first  e  needs a grave accent and becomes  Ãƒ ¨. The only exception is the  vous  present tense. Using the chart, you can easily learn the proper conjugations for  lever. For instance, to say I am lifting, you would say  je là ¨ve. Likewise, we will lift is nous là ¨verons. Subject Present Future Imperfect je là ¨ve là ¨verai levais tu là ¨ve là ¨veras levais il là ¨ves là ¨vera levait nous là ¨ve là ¨verons levions vous levez là ¨verez leviez ils là ¨vent là ¨veront levaient The Present Participle Creating ​the  present participle of lever  is extremely simple. All you need to do is add -ant  to the verb stem of lev- and you get levant. Not only is this a verb, but it can also be used as an adjective, gerund, or noun in some circumstances. The Passà © Composà © and Past Participle Beside the imperfect, you can express the past tense in French using the  passà © composà ©. Its rather easy, you will just need to conjugate the  auxiliary verb  avoir  to match the subject, then  add the  past participle  levà ©. For example, I lifted is jai levà © and we lifted is nous avons levà ©. More Simple Conjugations to Learn Among the other simple conjugations of  lever  that you might need are the verb moods known as the subjunctive and conditional. The subjunctive says that the verbs action may not happen because it is uncertain. Similarly, the conditional is used when the action will only happen if something else also occurs. With less frequency, you may come across the passà © simple and the imperfect subjunctive. Each of these is a literary verb form and primarily found in formal French writing. While you may not need them, its good to be able to associate them with  lever. Subject Subjunctive Conditional Passà © Simple Imperfect Subjunctive je là ¨ve là ¨verais levai levasse tu là ¨ves là ¨verais levas levasses il là ¨ve là ¨verait leva levà ¢t nous levions là ¨verions levà ¢mes levassions vous leviez là ¨veriez levà ¢tes levassiez ils là ¨vent là ¨veraient levà ¨rent levassent When you want to express  lever  in short and direct sentences, use the imperative form. In this one, theres no need to include the subject pronoun: use là ¨ve rather than tu là ¨ve. Imperative (tu) là ¨ve (nous) levons (vous) levez

Invisible Man, Race And Racism - 1822 Words

In the novel Invisible Man, race and racism is a constant issue of equality and inequality. In the 1960s, a black man confronts racism against not only to white folks, but society’s from degradation, but the narrator s experiences in the battle royal and his role in perceived the Brotherhood organization. However, the novel goes more in-depth in a race that makes it hard to find an individual identity. Finding out that the outside context of racism is more imposed into others while the narrator if mostly shocked with the idea of showing off values and knowledge when it came to the college experience that the narrator desire. The overall perception of the narrator skin color and social status conflict with his idea of the true reality that†¦show more content†¦The confidence gave the narrator to stand in front of the white and black communities and dealing with all of the critics he had gotten, but knowing what the future holds for him is speechless and feeling untitle d about himself. As Booker T. Washington words explain that blacks should be more instinct with the white community because of being powerful within the community and traveling around the black community indifferences with values and respect. The narrator travels throughout the world and the shape of the historical complex of race and racism that overtly or unintentionally is racist to whites in a figure of speech. â€Å" His face was a black blank of a face, only his eyes alive--with hate of me and aglow with a feverish terror from what happened to us all† (Ellison pg.24). During the battle royal the narrator was quite nervous due to the all fighting during this event and being able to give a speech in the honor of graduating high school and moving forward to college to gain new experiences. The most important of the figures are the blacks because of their moderation to fight against racism in this era and has taught to be more strong and proud to be the race that is diffe rent and has many aspects towards culture. Racism is no fun and games during this time and now to the present day. It’s kind of sad that racism still goes on today and getting through the harsh time in our historical timeline as American citizens. Knowing our history is very important becauseShow MoreRelatedA Protest Against Racism In Ralph Ellisons The Invisible Man1099 Words   |  5 PagesA Protest Against Racism Merriam- Webster’s dictionary defines racism as, â€Å"prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that ones own race is superior† (Merriam-Webster). The story follows a young college age black man (Invisible) in his quest of personal identity. The story follows a young college-age black man (Invisible Man) in his quest of personal identity. The novel exposed the evils of racism that are difficult to eradicateRead MoreThe Role Of Identity In Ralph Ellisons Invisible Man1236 Words   |  5 Pagesadolescents face. In the novel, Invisible Man, by Ralph Ellison, Ellison highlighted the struggles the main character, the â€Å"Invisible Man (IM)†, faced when it came to the division between how he distinguished himself and how the people in his life distinguished him. This caused a lack of self-established identity within the Invisible Man and throughout the course of the novel, various factors caused the Invisible Man to rethink his own identity. Ellison made a point about how racism went hand and hand withRead MoreEssay on Racism in Invisible Man838 Words   |  4 PagesRacism is perceived as a very negative aspect of society. When most people think of racism, they see hatred, evil, and ignorance. It has always been around since history has been recorded, and probably before that. There are many different forms of racism, but when one thinks of racism in America, they most certainly think of the struggles that the African-Americans have faced for hundreds of years. American literature has been noted for its sometimes controversial, but outspokenness of issues facedRead MoreRacism In Ralph Ellisons Invisible Man1573 Words   |  7 PagesRacism has been around for several centuries and it means, Prejudice, discrimination, antagonism, all directed towards someone of a different race, believing that one’s own race is superior over another† (CITATION). Racism goes far back into the thirteenth and fourteenth centuries and continues today although it isnt near as bad as it was before the 1900s. Invisible Man, written by Ralph Ellison and published in 1952, uses objects that symbolize the narrator to aid in the explanations of the racialRead MoreEssay on Impact of Rasicm on Idenity in Ralph Ellison’s Invisible Man1293 Words   |  6 PagesIn society, there are many misconceptions in terms of racism. According to the merriam-webster dictionary, racism is define the belief that race accounts for differences in human character or ability and that a particular race is superior to others . Many people would agree with that definition. What is racism? The normal person if asked will simply reply, not liking someone for the color of their skin. Racism from my attitude which is substantiated by historical events is a system of power .ThereforeRead MoreInvisible Man By Ralph Ellison1277 Words   |  6 PagesInvisible Man, by Ralph Ellison, is a s tory about a young African American man whose color renders him invisible. The theme of racism as a hurdle to individual identity is present throughout the story in a variety of examples. From the beginning of the novel the theme of identity is evident as the narrator states, â€Å"All my life I had been looking for something, and everywhere I turned someone tried to tell me what I was† (Ellison, p. 1254). In the midst of living in a racist American society the speakersRead MoreAnalysis Of Invisible Man By Ralph Ellison1665 Words   |  7 PagesRyan LaFleche 2-21-16 Dr. Valkeakari AMS 365 The Complexity of Identity in Invisible Man by Ralph Ellison Invisible Man (1952), written by Ralph Ellison, tells the story of a young, college- educated African American man struggling to survive and succeed in a society that is racially divided that refuses to consider him to be a human being. Taking place in the late 1920s and early 1930s, this novel describes the extraordinary journey of an unnamed African AmericanRead MoreIdenity Affected by Racism Essay1202 Words   |  5 Pages In society there is a lot of misconception of the term racism. According to the merriam-webster dictionary members of one race are intrinsically superior to members of others race which many people would agree with. What is racism? The normal person if asked will simply reply, not liking someone for their color of their skin. Racism from my attitude which is substantiated by historically events is a system of power .Thus is a system of power i.e. to control the world and its people. EmployedRead MoreRacism And Racism Essay986 Words   |  4 Pagessimilarities between sexism and racism. Sexism occurs when a person’s gender or sex is used as the basis for discriminating. Females are more susceptible to sexism although males are also susceptible. Sexual harassment and rape are examples of extreme cases of sexism. Racism occurs when people of a particular race or ethnicity are discriminated against or made to feel inferior. The primary outcome of the paper after comparison is t o determine most dehumanizing act between racism and sexism. The first similarityRead MoreThe Black Imagination By Bell Hooks961 Words   |  4 Pagescolonialism and racism actively coerce black folks to internalize negative perceptions of blackness, to be self-hating, and many of us succumb, blacks who imitate white (adopting their values, speech, habit of being, etc.) continue to regard whiteness with suspicion, fear and even hatred† (hooks, 49). Her article argues that although blacks affiliate themselves with the bad, they still lack the ability to accept white as the good. She also mentions the fact that when a white man visits a black town

The Development and Institutionalization of Slave Trade free essay sample

Slavery, the condition of one human being owned by another (Slavery), has gone through many stages in its development and its reception around the world. As part of the Roman Empire in the 1st century ACE, slaves were a large part of civilized society as entertainers in the gladiator arena. These slaves would have been forced to compete, but with their victories and their deaths they would gain respect and some even their freedom.In Africa before the 1 6th century, slavery and systems of servitude existed throughout the continent African slaves during this time were often captives of war or indentured servants; however they were not treated with disrespect. Instead it was common practice for such slaves to be fully integrated into the village or tribe to which their owners belonged. Slaves would live side by side with their owners and could eventually become each others peers.It wasnt until the colonization of the New World and the spread of tobacco cultivation (Fonder 101 began that the bond of slavery became less about the slave and more about cheap and lifelong labor. As Eric Fonder states in Give Me Liberty! , An American History, no European nation.. . Embarked on the colonization of the New World with the intention of lying on African Slaves for the bulk of its labor force (1 01 Unfortunately, as the New World began to develop and expand its agriculture base, namely tobacco, that the demand for workers increased.European settlers originally had no plan to meet the labor request. Their first resort was to force Indian labor (Morgan 52). This plan began to unravel quickly however, since the Indians were easily susceptible to foreign diseases and began to die off before profits could be made (Morgan 53). It became clear that the Indian population would not support the labor force needed, and so the Europeans began looking elsewhere. Having considered other options, Europeans set their sights on Africa (Morgan 53). The nations of West Africa had had long standing relationships with the different European nations. In the early years of what would become the Trans-Atlantic Slave Trade, Spain and Portugal were the first nations to export slaves from Africa in great numbers. Records show that from the years 1500 to 1 550 over 64, 000 slaves were exported by these two countries alone (Number of Captives). These same records conclude that until the 1 asss, Spain and Portugal were the only two countries with significant numbers in the slave trade.In 161 9, the first Africans, twenty in all, arrived in Virginia (Fonder 105), and with their arrival, the flood gates opened. It was at this time that other nations, namely Great Britain and the Netherlands, became more involved in the slave trade. The British and the Dutch began importing slaves to the New World to meet the needs Of the colonies. The British colonies of Virginia and Maryland, as well as the Dutch colony in New York, made up the Chesapeake area, with each having its own large tobacco industries that needed to be fueled by slave labor.By the turn of the century, the British and the Dutch had imported nearly 640,000 slaves o the colonies. With the importation of large number of slaves came more and more laws that tried to rationalize slavery as well to create a never ending supply of new slaves. Laws were passes regarding the birth of slave children as well as interracial children, with nearly all laws stating that if the mother was a slave that the child was a slave also, and became property of the slave owner. These laws consequently made sexual abuse of slave women profitable for slave holders (Fonder 106).In such a short time Virginia had changed from a society with slaves, in which slavery was one system of labor among others, to a slave society, here slavery stood at the center of the economic process (Fo nder 108). Across the Atlantic, as stated before, slavery was practiced throughout much of Africa among the various tribes and villages. However, with the increasing demand for slaves, coastal tribes would raid the inland tribes and capture their fellow Africans and sell them to the Europeans for small valuable trinkets.These newly Captures slaves couldnt possibly have known what their futures held for them in the New World, if they made it there. Within the borders of the New World slaves tried to escape whenever Seibel, but rarely succeeded in such a new and strange world. Slaves newly imported were subject to laws and customs that they didnt understand, and since many of them came from different villages few could communicate with each other (Marques). Slave rebellion was kept under control by the fierce and open violence aimed at those who stepped out of line.Fear for ones life suddenly became more important than freedom for many of the newly enslaved. As the years progressed the slave trade would see fluctuations in the number of slaves exported from Africa and imported to various countries as ell as into the co lonies, and then the United States of America. Political tensions, including the Revolutionary War, contributed to decline in slave importation but it wasnt until the 1 831 s that the slave trade essentially ended, at least for the United States.As History is bound to repeat itself, in recent times, there are numerous occasions were slavery has peaked and then declined. Fortunately these recent incidences, have never reached such catastrophic and saddening numbers as the Trans-Atlantic Slave Trade had.