TVM VARIABLES
The questions are included in the word document attached
Make sure the assignment is free of plagarism, references are noted and follows an API format
Question 1:
Discuss 2 real world examples of TVM from your own experiences (e.g: retirement strategies, consumer loans etc). How are the TVM variables used in financial decision-making? Make sure this is discussed in 250 words
Question 2:
An individual obtains a car loan which pays $30,000. The loan will be paid off in 3 years, and payments are made monthly. Interest rate on the loan is 7%, and compounding is monthly. Find the amount of monthly payments to pay the loan off. Provide a complete amortization schedule of the loan (this will entail a long table containing 37 rows). Present your work in detail and explain. Your paper should be 2 page minimum double spaced and APA formatted.
ANSWER PREVIEW
- Discussion Question 1
The time value of money (TVM) is an essential tool for business decision making. TVM is vital in making the buying and borrowing decision. The TVM help to compare investment decision in order to make the best choices that will increase the future financial position. The primary proposition is that the current value of the dollar is higher than its expected value in a future date. Based on this consideration, money borrowed is to be repaid with interest based on the length of payment.
TVM has a practical application in real life in retirement planning. Retirement planning involves a future investment made at present. For…
(600 WORDS)