Key Concepts: Capital, Financial Capital

Time Value Software—Financial Calculators

Select the "present value" or "future value" calculator under "Investment Calculators." Input relevant savings or investment data to assess their present and future values (e.g., What is the present value of X in future?). Calculate how monthly savings will add up by utilizing the "simple savings goal calculator" under "Investment Calculators."

• What is the present value of a U.S. Government Bond that pays $100,000 ten years from today given the current discount or interest rate of 6% per year?
• Explain why an increase in the discount or interest from 6% to 7% can erode the present value of future money.
• Utilize the "simple savings goal calculator" under "Investment Calculators" to assess how much money will be available in ten years at varying levels of monthly savings or investment.