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.
