BUS/223 BUS223 BUS 223 Time value of money
- Liberty University / Other
- 24 Oct 2017
- Price: $17
- Other / Other
BUS 223 Time value of money
): Take one of your goals and use time value of money with it. You need to include your goal and inputs. For example, one of my goals is to buy furniture in 12 months and it will cost me $1,000. You need to find out how much you can earn on your money and how much you need today or how much you need to put away each month. Therefore, I could say that the interest rate is 2% and the time frame is 12 months. My FV is $1,000 and I would be solving for PMT in this situation. Hints When it is monthly, you need to change the setting to 12 payments per year on the calculator and divide the interest by 12 if you are using Excel. If you are paying out for a payment or the present value (most of the time you will be using PV), then you need to enter it as a negative number. Try to estimate what you think it will be before completing the mathematical equation. If you are getting a car payment of $1,000, then you probably entered something wrong. Always clear out the calculator after each problem (2nd FV).
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