- Describe how interest rates impact time value of money calculation (use time value of money concepts and calculation to plan your savings and investing part of your financial planning goals, show examples with calculations)

answer

watching

116

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Get unlimited access

Already have an account? Log in

Trinidad TremblayLv2

28 Sep 2019

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

Related questions

Distinguish between savings and investing (what's the difference, different types, what role can each play in your portfolio).- Discuss the importance of ethics when working with financial planning professions (you can do some of this yourself, but you may also wish to hire a professional).- Explain the concept of return on investment and identify what part it will plan in your financial plan.- Explain risk vs. reward related to your personal financial goals.- Describe how the cost/benefit analysis impacts your choices (discuss opportunity cost).- Explain how savings and investing are impacted by the time value of money.- Describe how interest rates impact time value of money calculation (use time value of money concepts and calculation to plan your savings and investing part of your financial planning goals, show examples with calculations)

plumporpoise441

While in college, Pam Jenkins worked part-time and was never concerned about long-term financial planning. Rather than creating a budget, she used her checkbook and savings account (which usually had a very low balance) to handle her financial needs.

After completing college, Pam began her career as a sales representative for a clothing manufacturer located in California.

After one year, her assets consist of a 2002 automobile, a television set, some electronic entertainment equipment, and clothing and other personal belongs, with a total value of about $8,200.

Questions

Q1. List various personal financial decisions that Pam might be thinking about at this point in her life.

Q2. Realizing the information is limited, discuss possible future events that could impact Pam financially and what additional information is needed before recommending actions?

Q3. What are some specific short-term, intermediate, and long-term financial goals that Pam might want to develop?

Q4. List at least three financial situations and the time value of money calculations that would be helpful to Pam in planning or making decisions?

1. Why is the Time Value of Money (TVM) an essential concept for business decision making? Cite some examples of the types of decisions where TVM concepts are used.

2. Using TVM techniques, calculate the amount of savings you will need to comfortably retire. Be as specific as possible and discuss how you arrived at your conclusion. Justify your rate of return choice.

coralwater-buffalo687

Weekly leaderboard

Home

Homework Help 3,900,000

Finance 370,000