Time Value of Money - 2180 Words

The Basic Law in Finance Ââ€" Time Value of Money We earn money to spend it and we save money to spend it in the future. However, for most people spending money in the present time is more desirable since the future is unknown. We can gratify the desire to spend money today rather than in the future by knowing the basic law in finance Ââ€" time value of money. This means that a dollar today is worth more than a dollar at some time in the future. Unfortunately, people very often want to buy things at the present time which cost more that what they earn, so they pay with credit cards or take out loans which have to be paid off at some point in the future. In this paper we will discuss the present value of money, the future value of money,†¦show more content†¦Or, ask yourself this question: • What is todays value of future net receipts? Initial Outlay Year 1 Year 2 Year 3 Year 4 Year 5 Cash In $116,667 $206,000 $212,180 $218,545 $225,102 Cash Out TIs: ($180,000) Comm: ($ 82,710) OPEX: $85,000 $85,000 $85,000 $85,000 $85,000 Net Cash Flow ($262,710.00) $31,667 $121,000 127,180 133,545 140,102 - - - - - - - - - - Todays Value (262,710.00) - - - - - 28,788.18 ------- - - - - - 100,000.00 ---------------------- - - - - 95,552.22 ------------------------------------- - - - 86,992.32 ---------------------------------------------------- - - 91,213.03 -------------------------------------------------------------------- - $139,835.75 The present value of future net income; NPV. The future value of money invested is calculated by adding the present value and the interest earned (interest equals to present value times the rate of the interest, and is represented as a percentage). However, the future value of money may also work against us when for example we pay with credit cards and we have to pay it off with the money from the future plus interest expense. Suppose that instead of receiving $1,000 we spent $1,000 by purchasing merchandise on a credit card. Note that a dollar today is worth more than a dollar tomorrow, so we will have lost money because we will need to pay off our credit card accountShow MoreRelatedTime Value of Money1028 Words   |  5 Pagestoward understanding the relationship between the value of dollars today and that of dollars in the future is by looking at how funds invested will grow over time. This understanding will allow one to answer such questions as; how much should be invested today to produce a specified future sum of money? Time Value of Money In most cases, borrowing money is not free, unless it is a fiver for lunch from a friend. Interest is the cost of borrowing money. An interest rate is the cost stated as a percentRead MoreTime Value of Money1033 Words   |  5 PagesTime Value of Money (TVM), developed by Leonardo Fibonacci in 1202, is an important concept in financial management. It can be used to compare investment alternatives and to solve problems involving loans, mortgages, leases, savings, and annuities. TVM is based on the concept that a dollar today is worth more than a dollar in the future. That is mainly because money held today can be invested and earn interest. A key concept of TVM is that a single sum of money or a series of equal,Read MoreTime Value of Money967 Words   |  4 PagesTime Value of Money The time value of money relates to many activities and decision in the financial world. â€Å"Understanding the effective rate on a business loan, the mortgage payment in a real estate transaction, or the true return on an investment depends on understanding the time value of money† (Block, Hirt, 2005). The concept of time value of money helps determine how financial assets are valued and how investors establish the rates of return they demand. Many different types of companiesRead MoreTime Value of Money3904 Words   |  16 PagesTime Value of Money Problems 1. What will a deposit of $4,500 at 10% compounded semiannually be worth if left in the bank for six years? a. $8,020.22 b. $7,959.55 c. $8,081.55 d. $8,181.55 2. What will a deposit of $4,500 at 7% annual interest be worth if left in the bank for nine years? a. $8,273.25 b. $8,385.78 c. $8,279.23 d. $7,723.25 3. What will a deposit of $4,500 at 12% compounded monthly be worth at the end of 10 years? a. $14,351.80 b. $14,851.80 c. $13,997.40 d. $14Read MoreTime Value of Money5284 Words   |  22 Pages12/9/2012 Chapter 9 The Time Value of Money 1 Chapter 9- Learning Objectives ïÆ' ¼ Identify various types of cash flow patterns (streams) that are observed in business. ïÆ' ¼ Compute (a) the future values and (b) the present values of different cash flow streams, and explain the results. ïÆ' ¼ Compute (a) the return (interest rate) on an investment (loan) and (b) how long it takes to reach a financial goal. ïÆ' ¼ Explain the difference between the Annual Percentage Rate (APR) and the Effective Annual RateRead MoreTime Value of Money2092 Words   |  9 PagesTime Value of Money The time value of money (TVM) or, discounted present value, is one of the basic concepts of finance and was developed by Leonardo Fibonacci in 1202. The time value of money (TVM) is based on the premise that one will prefer to receive a certain amount of money today than the same amount in the future, all else equal. As a result, when one deposits money in a bank account, one demands (and earns) interest. Money received today is more valuable than money received in the futureRead MoreTime Value of Money2124 Words   |  9 PagesTime Value of Money: Simple Interest versus Compound Interest Outline I. Applications of Time Value of Money 1.1 Example One 1.2 Example Two 2. Interest 2.1 What is Interest? 2.2 Three Variables of Interest 1. Principal 2. Interest Rate 3. Time 2.3 Why is Interest Charged? 3. Simple Interest 3.1 What is Simple Interest? 3.2 Simple Interest Formula 4. Compound Interest 4.1 What is Compound Interest? 4.2 Compound Interest Formula Read MoreTime Value of Money712 Words   |  3 Pageswill pay the bank over the life of the loan? $123,945.04 4. What is the effective rate of interest on a CD that has a nominal rate of 7.25 percent with interest compounded monthly? EAR = (1+.0725/12)^12 – 1 = 7.5% 5. What is the future value of $4,950 placed in a saving account for six years if the account pays 3%, compounded quarterly? PV = 4,950 N = 6 x 4 = 24 I =3/4 = .75% Pmt = - FV = $5,922.24 6. Your firm, Vandelay Industries, has just leased a $32,000 BMW for youRead MoreTime Value of Money and Present Value1154 Words   |  5 Pagescollege 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $23,000 per year per child, payable at the beginning of each school year. The annual interest rate is 5.5 percent. How much money must you deposit in account each year to fund your children’s education? Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college Solution: Cost of 1 year atRead MoreTime Value of Money Essay708 Words   |  3 PagesTime Value of Money Project Show all your work! Name _________________ 1. If Mrs. Beach wanted to invest a lump sum of money today to have $100,000 when she retired at 65 (she is 40 years old today) how much of a deposit would she have to make if the interest rate on the C.D. was 5%? a. What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%. b. What would Mrs. Beach have to deposit if she

How to Form Subject and Object Questions in English

The following rules apply to question formation in English. While a number of more advanced ways to form questions in English exist, simple English questions always follow these rules. Generally speaking, there are two types of questions: object  questions and subject questions. Object questions   Object questions are the most common types of questions in English. Object questions ask when, where, why, how, and if someone does something: Where do you live?Did you go shopping yesterday?When are they going to arrive next week? Subject questions Subject questions ask who or which person or object does something: Who lives there?Which car has the best safety features?Who bought that house? Auxiliary Verbs in Object Questions All tenses in English use auxiliary verbs. Auxiliary verbs are always placed before the subject in subject  questions in English, with the main form of the verb being placed after the subject.   Yes/No questions begin with the auxiliary verb: Auxiliary Verb Subject Main Verb Do you study French? Information questions begin with question words such as where, when, why, or how. How often did you visit Paris when you lived in France?How long have you lived here? Auxiliary Verbs  in Subject Questions Auxiliary verbs are placed after question words who, which, which kind of, and which type of in object questions. Drop the helping verb for present simple and past simple, as in positive sentences: Who/Which (kind of/type of) Auxiliary Verb Main Verb Which type of food provides the best nutrition?Who is going to speak at the conference next week?What type of company employs thousands of people? Finally, subject questions generally use simple tenses such as present simple, past simple and future simple. Object Questions Focus  on Tenses While its possible to form subject questions in each tense, the following examples focus on the use of object questions in a variety of tenses, as they are much more common. Present Simple/Past Simple/Future Simple   Use the auxiliary verb do/does for present simple questions and did for past simple questions plus the base form of the verb. Present Simple Where do they live?Do you play tennis?Does she go to your school? Past Simple When did you have lunch yesterday?Did they buy a new car last week?How did she do on the exam last month? Future Simple When will she visit us next?Where will you stay when you get there?What will we do?! Present Continuous/Past Continuous/Future Continuous Use the auxiliary verb is/are for present continuous questions and was/were for past continuous questions plus the present participle or ing form of the verb. Present Continuous What are you doing?Is she watching TV?Where are they playing tennis? Past Continuous What were you doing at six p.m.?What was she cooking when you came home?Were they studying when you walked into their room? Future Continuous What will you be doing next week at this time?What will she be speaking about?Will they be staying with you? Present Perfect / Past Perfect / Future Perfect Use the auxiliary verb have/has for present perfect questions and had for past perfect questions plus the past participle. Present Perfect Where has she gone?How long have they lived here?Have you visited France? Past Perfect Had they eaten before he arrived?What had they done that made him so angry?Where had you left the briefcase? Future Perfect Will they have finished the project by tomorrow?How much time will you have spent reading that book?When will I have completed my studies?! Exceptions to the Rule - To Be - Present Simple and Past Simple The verb to be takes no auxiliary verb in the present simple and past simple question form. In this case, place the verb to be before the subject to ask a question. To Be Present Simple Is she here?Are you married?Where am I? To Be Past Simple Were they at school yesterday?Where were they?Was she at school? This is the basic structure of all questions in English. There are, however, exceptions to these rules as well as other structures. Once you understand this basic structure, its also important to  continue learning about how to use indirect questions  and  tag questions.   Remember that questions are one of three forms for each sentence. There is always a positive, negative and question form for each sentence. Study your verb forms and youll be able to easily use each of these tenses to have conversations and ask questions effectively.

Going After Cacciato Free Essays

Waking up from the American Dream in Going after Cacciato (Tim O’Brien) What passing-bells for these who die as cattle? Only the monstrous anger of the guns. Only the stuttering rifles’ rapid rattle Can patter out their hasty orisons. (from Anthem for Doomed Youth, Wilfred Owen) Sassoon’s epitaph â€Å"All Soldiers are dreamers† at the beginning of the novel functions as a signpost signaling the shape the novel will take. We will write a custom essay sample on Going After Cacciato or any similar topic only for you Order Now It does not merely deal with brutal horror, it is imagination. Reality and dream, fact and imagination are interwoven. The choice of Siegfried Sassoon suggests the Great War, the English experience of war, which can be compared to the American Vietnam experience, for it had the same impact: total disorientation and national trauma because of lost values. This novel then deals, in story and structure, with the war experience, but also with the US society’s influence on that war through the ordinary soldier. The common grunt raised the question how to act properly in this horrible situation, in which he even did not know whether his presence was morally justified or not. Yet he concluded that, although he knew this war was just as insane as any other war, he should not run away from his duty. He stayed in the war, because of his personal obligations to society. Not out of idealism, but merely because his people expected him to. In novels dealing with Vietnam we often see veterans coming back into the American society (like in Caputo’s Indian Country), but here we are confronted with the country itself. The novel Going after Cacciato deals with the journey to Paris an American soldier fantasizes about. It is November 1968 and Spec. Four Paul Berlin is in his observation tower in Quang Ngai, Vietnam, by the South China Sea, performing his tour of duty, which lasts 365 days for the common grunt, the foot soldier he is. He feels he has come to Nam in another way than soldiers had gone to the Second World War and to Korea. His lieutenant, Lt Corson had been in Korea, and he was looking back to it with nostalgia: â€Å"In Korea, by God, the people liked us. Know what I mean? They liked us. Respect, that’s what it was. And it was a decent war (†¦ The trouble’s this: Nobody likes nobody. (p. 134) New were the blindness of war, the inertia, drugs were taking over, the creation of the new word â€Å"fragging†, i. e. killing a superiour officer It all illustrated this war was supposed to be different from those wars in which Paul Berlin’s ancestors had fought, with in their mind the American dream. However, Vietnam was not different at all. Soldiers who enth ousiastically started their participation in Vietnam, were as quickly traumatized by the killings, as any other soldiers. A war like any other war. Stories that began and ended without transition. No developing drama or tension or direction. No order. (p. 255) When Paul realizes this, the main question for him is how to determine his own place in it. As he does not know an anwer, the possibility, or rather the necessity of dreaming something else in the face of horror, is brought to Vietnam. He starts to think about Cacciato. This bloke fishes in the world’s Great Lake Country where everybody says there is no fish. He dutifully goes through all the motions and all of a sudden het gets out, and Paul is intrigued. Paul’s squad is sent to go after Cacciato. They are following the unmarked character and find him more and more almost a holy character, less defined as they go along. Finding him a friendly leader almost, they follow him. From soldier among soldiers, he develops into a friendly symbolical figure pointing the way. The seductiveness of Cacciato leads them on. He sheds his war implements. He is that annoying, different, seperate chap who bounces the ball, who nobody can trace and think of, who does not really exist, he has not even got a first name! Cacciato, that just fulfills. Going after Cacciato means â€Å"going after a dream†, following that dream, but it can also mean â€Å"going after to actually get that dream†. Time and time again there is this ambiguity of going on the hunt after Cacciato, or following the Italian on desertion; there is the choice between reality and dream for Paul. Cacciato, who nobody has actually seen, has hit upon an idea which his indeterminance made possible, and it speaks to the imagination. Paul goes after him, catches him, thus completing his mission, but lets Cacciato escape. Cacciato then leads them through the beautiful high country, through orderly Mandalay, normal Delhi, to a beheading in gruesome Tehran, all the way via Athens to Paris; the change of scenery symbolizes the hope Paul first feels, gradually turning into despair and total confusion. His experiences on the way show Paul that he cannot actually leave the war behind. â€Å"Can’t get away from it,† Doc mumbled. â€Å"You try, you run like hell, but you just can’t get away. † â€Å"It’s the truth. † (p. 178) Arrived in Paris and having hugged, outbursts of rain and thunder presage the forthcoming difficulties. Reality soon makes the squad go and hunt down Cacciato again. Oscar, the streetwise Detroit black, insists on the Real Politik of getting Cacciato to save their own skins from punishment for desertion. They have to arrest Cacciato and abandon their dream, because society expects them to do so. â€Å"Oscar’s right,† Doc said, and sighed. â€Å"You can’t get away with this shit. the realities always cath you. † â€Å"But maybe. † â€Å"No maybes. Reality doesn’t work that way. † (p. 275) Paul Berlin is not ready yet to stop Cacciato and lets him escape again. Choosing reality and turning his back on the dream are, however, close at hand. In the promotion scene Paul remembered himself answering questions to a committee that scared the living daylights out of him. â€Å"Why do we fight the war? † they asked him, but at the same time the committee told him the answer: â€Å"to win†. Very afraid, he repeated this and got the job. Paul then realizes society urges him to do as he is told, and not to think for himself, as society will do that for him. He has to conform and shut up. He knows this cannot be right, but on the other hand his fantasized run for Paris would have been an equally unhappy experience to him in reality. For fantasy it had been all along. His dream of going after the freedom and peace Cacciato led him to, had all been a dream within a dream. The latter dream was dreamt in order to avoid having to solve the dilemma of staying in or running away from the war. He finally woke up from that dream, for now he had found the answer: he had to go through it; trying to escape and fleeing from social obligations was not according to his background, his personality and his beliefs. â€Å"I fear what might be thought of me by those I love. I fear the loss of their respect. I fear the loss of my own reputation. Reputation, as read in the eyes of my father and mother, the people in my hometown, my friends. I fear being an outcast. † (p. 286) The novel is structured round three elements that are in accordance with the three different activities of Paul Berlin’s conscience: reflection, imagination and memories; he is wondering how people die in the war, he thinks about going to Paris and he stands on guard. The killings of war and their stories are told non-chronologically, as if they happen at this very moment. Paul Berlin tries to get things straight, tries to get a chronological list of the men killed. He needs order, wants to keep it straight, but he has problems with this. The structure of the novel reflects the structure of any war: it is confusing and without order, sometimes a mess and going in different directions. The hero solves this problem by making up a story himself. It is a story in the third person, told as a reality, told almost as observed by an omniscient observer, who has no involvement; but at the same time we know they are Paul Berlin’s imaginations. All of a sudden this woman comes up in the he-country of Vietnam; only in imagination a beautiful girl is possible there. By the end of the novel the reader knows that the squad never went after Cacciato any further than the hill, and that Paris only denoted the illusion of seeking the Far West. In reality they had always been in the Far East. The unlimited possiblities of the Imagination, as that of the United States and its American Dream as well, fail in the reality of the Vietnam War. Berlin, whose name points to the American commitment to saveguard freedom (by setting up the airbridge to the city of Berlin under siege of the Soviets in 1948) finds himself in a situation in which the values, ideals and intentions of the United States no longer have the absolute meaning they seemed to have in previous wars. In Paris, the heart of Western civilization, Paul Berlin lacked the courage to free himself, even in his dreams, and reality took over: No question, it was all crazy from the start. None of the roads led to Paris. p. 203) He has to accept that he and his comrades would be the very deserters, who would flee from the original idea of the American Dream, that told them that the only way if you really wanted to overcome all problems is to keep on trying. Only Cacciato, who with his childish simplicity and innocence, with his optimism and his individual power embodies the mythical American loner, he frees himself from the society that tells him what to do. He is, how ever, lost, together with these values, in the Vietnam War. The American Dream had led young Americans into a place where they had no right to go. They were supposed to fight and defeat the Viet Cong to serve the American nation, but in this war, just like in any other, confusion and death were the real victors; the war served no American purpose at all. The lesson Paul learned from the Vietnam War was far from significant: â€Å"Don’ never get shot†. â€Å"There it is,† said Eddie Lazzutti. â€Å"Never. Don’ never get shot. † (p. 254) He might have learned that back home in the US as well. So in Vietnam this trail West was a fake one. In Fort Dodge you could build good solid houses, in the wilds of Wisconsin you fraternized with your father who told you, back there, to look for positive things in the war. In Nam, however, there is only the squad, and all of a sudden this â€Å"boom†, like in Billy Boy Watkins’ story, the case of the grunt dying of fright. It is the ultimate war story, the story of Vietnam. So Paul starts dreaming his own dream, he rejects the American dream. He nevertheless does not reject reality. Like Arthur Dimmesdale in The Scarlet Letter by Nathanial Hawthorne, he does not want to give in to the code of society, but does not want to be lured into the moral wilderness either. He wants to stay part of that society, although he knows its claims are based on air. â€Å"†¦ it is this social power, the threat of social consequences, that stops me from making a full and complete break. † (p. 286) However nasty the war may be, it is better to take part than to be isolated, so Paul Berlin ends his dream, in order to face reality. bibliography: Going after Cacciato (Tim O’Brien) Walking Point: American Narratives of Vietnam (Thomas Myers) How to cite Going After Cacciato, Papers

Narrative of the Life of Frederick Douglass and an Essay Example For Students

Narrative of the Life of Frederick Douglass and an Essay Invisible Man comparison compare contrast essays Narrative of the Life of Frederick Douglass and an Essay Invisible Man The Black Revolution has been occurring for quite some time and in many different ways. Two primary examples of the struggle and yearn for change among African Americans include Narrative of the Life of Frederick Douglass, An American Slave, the autobiography of Frederick Douglass and Invisible Man, a novel written by Ralph Ellison. Although both have the same foundation, the difficult task of being black and trying to make something of yourself, many important differences exist between these works. First, the language used by the authors is strikingly dissimilar. Next, the time periods in which these pieces of literature were written have a difference of over one hundred years. Finally, the main characters are faced with different circumstances and injustices. First, the language and literary devices used by the two authors are very different. In his autobiography, Frederick Douglass uses a very educated language and makes his story able to be understood by the reader quite easily. It is exactly what the title states, a narrative, and tells the story of Douglass life in a simple, yet touching way. However, in Invisible Man, Ellison transforms the English language into something eloquent and beautiful. Nor is my invisibility exactly a matter of a bio-chemical accident to my epidermis. (193) This is an example of Ellisons wonderful mastery of language and vocabulary. Ellison also utilizes dialect in his description of his own level of Dantes hell. In this section, he also gives reference to the strong Christian roots of African Americans and their sense of religion and belief in God. He also uses vivid imagery with the use of many adjectives describing people and places. For example, the beginning of his description of hell, .. .I saw a beautiful girl the color of ivory pleading in a voice like my mothers.(197) The use of dialect and imagery gives the novel more depth and intensity and intrigues the reader. The next difference between these two pieces of literature is in the time periods in which they were written. Frederick Douglass was born into slavery somewhere around the year 1817 and his autobiography was published in 1845. Though his is a work of fiction, Ralph Ellison writes about the story of a black man living during his time. Ralph Ellison was born in 1914 and lived most of his adult life in New York, which is where the main character in Invisible Man is living. Douglass story portrays the life of a black slave in the South, whereas Ellison depicts the struggles of a black man living in the eastern United States, specifically New York. Douglass is searching for freedom from slavery while Ellisons character is struggling to establish himself as a free man and fight discrimination. Finally, the injustices faced by the main characters in these two works are different. Douglass is faced with harsh treatment and cruel whippings from his many different owners, I had been at my new home but one week before Mr. Covey gave me a sever whipping, cutting my back, causing blood to run, and raising ridges on my flesh as large as my little finger.(244) However, the character in Invisible Man is faced with discrimination and being treated as if he were invisible by the white people around him. That invisibility to which I refer occurs because of a peculiar disposition of the eyes of those with whom I come in contact.(193) In conclusion, the works of Douglass and Ellison portray the struggles of the black man at different periods in history. .u475a15ea6bb11530e7928474fe420f4f , .u475a15ea6bb11530e7928474fe420f4f .postImageUrl , .u475a15ea6bb11530e7928474fe420f4f .centered-text-area { min-height: 80px; position: relative; } .u475a15ea6bb11530e7928474fe420f4f , .u475a15ea6bb11530e7928474fe420f4f:hover , .u475a15ea6bb11530e7928474fe420f4f:visited , .u475a15ea6bb11530e7928474fe420f4f:active { border:0!important; } .u475a15ea6bb11530e7928474fe420f4f .clearfix:after { content: ""; display: table; clear: both; } .u475a15ea6bb11530e7928474fe420f4f { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u475a15ea6bb11530e7928474fe420f4f:active , .u475a15ea6bb11530e7928474fe420f4f:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u475a15ea6bb11530e7928474fe420f4f .centered-text-area { width: 100%; position: relative ; } .u475a15ea6bb11530e7928474fe420f4f .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u475a15ea6bb11530e7928474fe420f4f .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u475a15ea6bb11530e7928474fe420f4f .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u475a15ea6bb11530e7928474fe420f4f:hover .ctaButton { background-color: #34495E!important; } .u475a15ea6bb11530e7928474fe420f4f .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u475a15ea6bb11530e7928474fe420f4f .u475a15ea6bb11530e7928474fe420f4f-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u475a15ea6bb11530e7928474fe420f4f:after { content: ""; display: block; clear: both; } READ: The Education Connection Essay The difference in time setting causes the main characters to face different problems and injustices. The authors also attain different levels of literary skill, making their works appealing to different readers. .