RCSC 150B2 Lecture 12: Time value of money pt 1

2 Pages
Unlock Document

Retailing & Consumer Science
RCSC 150B2

find more resources at oneclass.com Friday, September 30, 2016 Time value of money pt 1 MCF Time Value of Money • CHAPTER PLAY LIST SONGS: • “All Work and No Play” by Van Morrisondgren • “Sixteen Tons” by Tennessee Ernie Ford Learning Objectives • LO 2-1 Explain what gives paper currency value and how the Federal Reserve Banks manage its distribution. • LO 2-2 Differentiate between simple and compound interest rates and calculate annual percentage yields and the value of paying yourself first. • LO 2-3 Calculate the future and present value of lump sums and annuities in order to know what to put aside to meet your personal financial goals. What Gives Money Value • “The mint makes it first, it is up to you to make it last” ~ Errol Flynn • Foreign Exchange Rates • Why does the dollar’s value change in relationship to other currencies? • What gives the U.S. dollar value? • What is going on with the supply of U.S. currency? • Who controls the money supply for the United States? • Why is the U.S. dollar in demand? What is its competition? • US Debt Clock Look at a Dollar Bill Facts about dollar bills Power of Compounding “The most powerful force in the universe is compound interest” ~ Albert Einstein Compounding Interest • Compounding: Process whereby the value of an investment increases exponentially over time due to earning interest on interest previously earned • Annual Percentage Rate (APR): Annual rate charged for borrowing or made by investing • Annual Percentage Yield (APY): Effective yearly rate of return taking into account the effect of compounding interest ▯1 find more resources at oneclass.com find more resources at oneclass.com Friday, September 30, 2016 Simple Interest vs. Compound Int
More Less

Related notes for RCSC 150B2

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.