Time value of money is a financial concept that illustrates how the value of money grows over time

 

Respond to the following in a minimum of 175 words each

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)

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.
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.
How can a formula help a company be successful?

 

Sample Solution

convoluted EU environmental acquis into ‘sovereign’ law. The concern is that the challenges which are heavily entangled within this complex task may expose a governance gap; as Reid argues, the simple ‘copy and paste’ approach favoured by the Government is not viable – for example, where environmental law is guided by and relies upon institutional structures, enforcement mechanisms and the EU’s substantive environmental law. The enormous workload caused by the loss of the EU framework of planning, research, reporting and accountability puts at jeopardy the coherence of UK environmental law. To combat this, the UK would in reality need to develop a body of domestic environmental law that accommodates various levels of governance locally, transnationally and internationally.

The practical reality is that there may in fact be regression in terms of environmental protection. The extensive effect of EU membership is perhaps most clearly exhibited through the estimation that 80% of all UK environmental law originates from the EU. In a broad respect, the collaborative aspect of EU membership has benefitted Member States by advancing air and water cleanliness, species protection and conservation. It is no surprise, therefore, that there is a general consensus that EU membership has positively impacted UK environmental law.

Moreover, despite claims that Brexit provides an opportunity to improve the environment through new legislation and initiatives, this freedom already exists. Whilst membership to the EU does present some obdurate constraints, for example because of public procurement, there is little evidence to prove that it in fact inhibits the UK from setting even more ambitious targets.

The conclusion is therefore that, on balance, the possibility for genuinely positive change is far outweighed by the challenges facing the UK. By operating on the fringes of the EU, the UK will lose the advantages of working within a collective network with a mutual ambition to achieve greater environmental protection. Whilst in theory Brexit may provide an opportunity for the UK to advance environmental protections, Britain’s track record does not exactly suggest this will happen. And so, we are only left to fear the adverse effects that a lack of willpower to ensure higher standards across the UK may have in years to come.

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