In order to solve the problems in context of time value of money it comes out to be very difficult for the students. Furthermore, it is observed that there are numerous variations that make harder for the students in order to grasp everything. Although, students are required to understand the concepts and the rest will fall into its place. Some of the areas are Car loan schedule calculation, Loan Amortization schedule calculation, etc.
Illustrations for solving assignment of time value of money
Amount invested - $50 Dollars (Current Value)
Rate of Interest (ROI) – 10% (Current Value)
Thus, if we invest 50 dollars today then it will earn exactly 55 dollars after one year from the date it is being invested, and both have the same value to the recipient who assumes 10% interest. In accordance to time value of money assignment help we can conclude that today's 50 dollars will be equivalent to 55 dollars after a year.
We can go in the opposite direction as well. The amount of 105 dollars can be discounted in order to calculate the present value.
For conceptual clarity in time value of money, it involves calculations in regard to basic mathematics and algebra. We discount the future value equivalent to the time value of money assignment help.
PV = FV - r*PV = FV/ (1+r).
PV = Presnet Value,
FV = Future Value,
r = rate of interest,
(1+r) = in the denominator is called the discounting factor in the time value of money.
Some sample questions are provided in order to understand few terms that are frequently being used while solving the problems of the time value of money:
- The Future value of an annuity (FVA) assignment help is the future value of a surge of payments (annuity), assuming the payments are invested at a given rate of interest.
- Future cash flows are being provided at the rebate rate and with the given discount rate. Furthermore, the higher will be the discount rate; the minimal will be the present value of the future cash flows assignment help.
- he Future value will be the value of an asset or cash on a specified date in the future that is equivalent in value to a specified sum today.
- The Present value of an annuity assignment help is a series of equal payments that occur at evenly spaced intervals is termed as the present value of an annuity. Two common examples can be Leases and rental payments. It can be either the end of the annuity period or it can be due at the beginning of the annuity period.
- Present value is the current worth of a future sum of money at a specific rate of return.