Time value of money

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Time value of money is a financial concept that illustrates how the value of money grows over time. This takes into consideration that the money can be invested at a specified interest rate, that grows. One financial concept is present value (PV) and another financial concept is future value (FV).

1. Discuss and show one example of how the present value formula is a good method to determine how much is needed to save monthly, in order to have a specified sum of money at retirement age in 25 years at 8% interest.

2. Discuss and show one example of how the future value formula is a good method to determine how much of a lump sum is needed today, to invest for 25 years to reach a specified retirement amount, with 8% interest.

Sample Solution

Time value of money

Retirement planning is all about figuring out how much money you need to stow today in order to meet your needs tomorrow. It can feel like a daunting task, but it`s easier when you know how to make some simple calculations. Calculating the “present value” of your money plays an important part in your retirement planning. Put in simple terms, the present value represents an amount of money you need to have in your account today to meet a future expense or a series of future outflows, given a specified rate of return. For example, if you need $200, 000 in your account 10 years from now, the present value, or the amount you need to start with today, changes based on various assumed rates of return: if you earn a 3% return, you will need $148,818 to start; at 4%, you will need $135,112.

 

 

Sonnets of Seduction

People are frequently censured for being enticed via vehicles and casualties. This reason is likewise reflected in Alfred Tennyson’s “Lotos Eaters” and “The Lady of Shalott”. These character are additionally survivors of enticement from outer powers. We make a parity on the subject of sexual orientation and utilize a retreat as a device to explain the difference among people. In particular, both character bunches deserted their normal life them, twisted around to another den, depicted the self-destructive inclination, and always surrendered the difficulties of their past lives .

There are numerous likenesses between the sonnets of the two stories “cousin Kate” and “allurement” For instance, verse depends on affection and female maltreatment. Be that as it may, these two sonnets are likewise totally different in certain regards. For instance, the response to adore is diverse in verse. Since ‘Cousin Kate’ was made in the 1860 ‘s and’ The Seduction ‘was made in the 1970′ s, these sonnets are isolated by a hundred years. Thus, there are numerous contrasts between them. The distinction in time adds to the language wherein the artist is composed.

This sonnet can be portrayed as a charming verse of enticement. Various sonnets spread this subject, and it is utilized legitimately to allure stories that have just occurred. A few people wear sentimental analogy, others cause aggravation and obscure the perusers. The allurement utilized by Christopher Marlow’s “enthusiastic shepherds love him” passes on an appealing angle. Squires must offer significant things to friends and family, else they don’t should be enticed. “Enthusiastic shepherds love him,” and the sweetheart gives an anecdotal life to his adoration. There is no clue that nature is absolutely magnificent to make peaceful dream. The citation clarifies this, “I will make you a rose bed and a thousand fragrant verse.” This sonnet utilizes this honorable condition of nature to exemplify love of a friend or family member, however I can not trust it soundly. His verse pulls in youngsters’ considerations

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