HCS 219 Week 3 Time Value of Money Worksheet
HCS 219 Week 3 Time Value of Money Worksheet Recent
Resource: Time Value of Money Worksheet
You decide it would be good to send Lauren some additional information regarding time value of money concepts.
Complete the Time Value of Money Worksheet.
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Time Value of Money Worksheet
Part 1: Complete the following table by inserting your responses to the questions. Cite any sources you use.
Define the time value of money.
Provide a real-world example for the time value of money.
Why is time such an important factor in financial matters?
How would you use the time value of money to your financial benefit?
Part 2: Complete the following tables by calculating the ratios.
Amount
Compounding period
Rate of interest
Present value
$100,000
Annual
6% for 10 years
$70,000
Annual
4% for 15 years
Initial cost of investment
Periods of useful life
Estimated annual net cash inflow generated
Look-up table value
Rate of interest
$75,000
10
$10,190
$56,000
6
$12,115
Purchase price of equipment
Period of useful life
Annual revenue generated per year
Operating costs associated with revenue
Depreciation expense per year
Payback period result
$550,000
10 years
$100,000
$32,000
$55,000
$350,000
10 years
$80,500
$36,000
$35,000