Question

1) General Guidance: This question requires you to demonstrate your understanding of Time Value of Money (TVM). You will type your discussion in response to the question posed in the text box provided below. Ensure you address the requirements of the question. Do not simply copy and paste sample discussions from the textbook and module solutions. Instead, you should paraphrase and be sure to contextualise your discussion.

Question/ Task: Explain the relationship between interest rates and Present Values. If interest rates rise, what might happen to Present Values? To keep the same Present Value, how must the investment term (time) or annuity payments change to compensate for an interest rate increase? (60 – 80 words)

Answer #1

Interest rate and present value will be having a inverse relationship because when the interest rates will be going higher,the present value associated with an investment will go lower because of the higher discounting rate.

This can be related to the the concepts that when there is a high discounting rate applicable to the overall streams of the cash flows, it would be leading to a lower present value and when there is a lower discounting factor associated with the overall cash flows it would be leading to a higher present value.

To keep the same present value, investment or annuity payments should be changing at the rate of interest rate change, to help the the company retain the same present value because when there would be similar change in the interest rate then the deduction in the present value would be nullified.

This discussion question will have you demonstrate your
knowledge of the medical terms, understanding of the use of nouns,
pronouns, and verbs, by creating a scenario of a patient. Research
a medical disease and write 2-3 paragraphs to your classmates
describing your patient’s condition using 20 of the words in
Section 1, 2, and 3 of the textbook under “Medical Spelling.” You
must highlight these words in yellow. You will also need to
highlight at least ten nouns, ten pronouns,...

This discussion question will have you demonstrate your
knowledge of the medical terms, understanding of the use of nouns,
pronouns, and adjective, by providing a section for a summary
hospital discharge report. (See page 104 & 105 for examples)
Research a medical problem that would be treated in a hospital and
write 2-3 paragraphs to your classmates describing the “events that
occurred during the patients stay,” using 20 of the words in
Section 1, 2, 3, and 4 of the...

Answer the following questions as detailed as
possible:
Question #1 – Time Value of Money
Please give a detailed example from your own personal or
professional experiences (life/career) that involves the Time Value
of Money.
The Time Value of Money defined as in Chapter 4 as: Present
Value, Future Value, Present Value of an Annuity, Future Value of
an Annuity, Amortization. It can be one of these above or
multiple.
Explain the example and how this/these money valuation
tools fit...

Answer the following questions as detailed as
possible:
Question #1 – Time Value of Money
Please give an example from your own personal or professional
experiences (life/career) that involves the Time Value of
Money.
The Time Value of Money defined as in Chapter 4 as: Present
Value, Future Value, Present Value of an Annuity, Future Value of
an Annuity, Amortization.
It can be one of these above or multiple.
Explain the example and how this/these money valuation tools fit
into...

Time Value of
Money
The following
situations test your comprehension of time value of money concepts.
You will need your financial calculator. For each problem write the
variable from the problem next to the variable in your calculator
menu. Put a question mark next to the variable we are solving for,
and put the answer to that variable on the “Answer” line. Remember
that there has to be a negative number in your calculations for the
formulas to work. If...

QUESTION 5: Time value of money
5.1 You decided to invest R20 000 in a bank account over five
years that is paying 5% interest per year. Calculate your interest
if interest is compounded annually. Also, how much will you have
accumulated if the interest was compounded monthly instead of
annually?
5.2 Explain what a zero-coupon bond is and calculate the present
value of the following zero-coupon bond with a par value of R100:
The bond is to be redeemed...

Time Value of Money
Overview: In corporate finance, students need
to be able to calculate present and future values of
investments.
Purpose: The purpose for this project is to
demonstrate an understanding of how to calculate present and future
values.
Requirements: Review the examples then answer
all of the questions below.
Example 1: What is the present value of the
$800 to be received 10 years from now discounted back to the
present at 10%.
Use your financial calculator to...

In
your answers, you should properly show your work by writing down
your entries into the calculator. For instance, if you use the TVM
worksheet of your financial calculator to compute how long it takes
to double your account balance given 5% annual interest rate, you
should write down your entries as: I/Y=5, PV=-1, PMT=0, FV=2, CPT
N=? --- the question mark here stands for your answer to the
question.
Question 6 – PV, Ordinary Annuity, Compounding [2 points]:
Find...

Question 1 (Time Value of Money and WACC)
(a) You need to pay off a car loan within the next two years.
The payment will be $4,000 every
month. Today you have made a single deposit into a
return-guaranteed investment account
that will allow you to cope with all the monthly payments.
This account earns an effective
annual interest rate of 12.68250301%. The first payment will
be made in one month.
(i) Calculate the corresponding monthly rate for the
investment...

Question 1 (25 marks/ Time Value of Money and WACC
(a) You need to pay off a car loan within the next two years.
The payment will be $4,000 every month. Today you have made a
single deposit into a return-guaranteed investment account that
will allow you to cope with all the monthly payments. This account
earns an effective annual interest rate of 12.68250301%. The first
payment will be made in one month. (i) Calculate the corresponding
monthly rate for...

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