FIN 200 Week 1 Discussion | Assignment Help | American University

FIN 200 Week 1 Discussion | Assignment Help | American University 


Discussion 1

1. What do we mean by “Time Value of Money”?

2) What is compound interest? How is compound interest related to Time Value of Money (TVM)?

3) What 2 factors most affect how much people need to save to achieve their financial goals?

4) Why might an investor require a greater expected return for an investment of longer maturity?

5) Why is the interest rate in a Time Value of Money (TVM) calculation sometimes referred to as the discount rate?

6) Why might you use the anticipated rate of inflation as the discount rate when calculating Present Value?



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