Study sets matching "value money"

Study sets
Classes
Users

Study sets matching "value money"

8 terms
value for money
paper money
account
banknotes
bill note
currency issued by a government or central bank printed money
...
a piece of paper money
paper money
currency issued by a government or central bank printed money
account
11 terms
Money & Values
credit
debt
a bargain
overpriced
when you owe money
when something is a good, cheap price
when something costs more than it's worth
credit
debt
when you owe money
5 terms
Money Values
quarter
penny
dime
nickel
.25 cents
.01 cents
.10 cents
.05 cents
quarter
.25 cents
penny
.01 cents
Value for Money
trolley
cashier
till
checkout
cart where you put goods you buy at a supermarket
person who works at a bank or shop receiving the money you pay
a drawer, box, or the like, as in a shop or bank, in which mo…
where you line un and pay for your purchase at the supermarket
trolley
cart where you put goods you buy at a supermarket
cashier
person who works at a bank or shop receiving the money you pay
10 terms
Money Values
Quarter... $0.25
Dime... $0.10
Nickel... $0.05
Penny... $0.01
Twenty-five cents
Ten cents
Five cents
One cent
Quarter... $0.25
Twenty-five cents
Dime... $0.10
Ten cents
value of money
inflation
disinflation
reflation
hyperinflation
A general and progressive increase in prices
a reduction in the rate of inflation
restoration of economic activity, consumer prices, etc., to h…
inflation that is out of control
inflation
A general and progressive increase in prices
disinflation
a reduction in the rate of inflation
value of money
bank
cash
compound Interest
compounding
a financial institution that provides various products and se…
money in the form of paper currency or coins (as distinct fro…
earning interest on interest through reinvesting. The result…
the process of leaving an initial investment plus accumulated…
bank
a financial institution that provides various products and se…
cash
money in the form of paper currency or coins (as distinct fro…
Money Values!
Worth 1 cent
Worth 5 cents
Worth 10 cents
Worth 25 cents
penny
Nickel
Dime
Quarter
Worth 1 cent
penny
Worth 5 cents
Nickel
23 terms
Value for money
anxious
out-of-town
receipt
convenience
niespokojny
poza miastem
paragon
wygoda
anxious
niespokojny
out-of-town
poza miastem
Value for money
foodstuffs
own- brand
cashier
value
artykuły spożywcze
własna marka
kasjer
cena
foodstuffs
artykuły spożywcze
own- brand
własna marka
Money Values!
The Penny
The Nickel
The Dime
The Quarter
Worth 1 cent
Worth 5 cents
Worth 10 cents
Worth 25 cents
The Penny
Worth 1 cent
The Nickel
Worth 5 cents
6 terms
Money and their value
One dime is....
One nickel is...
A half dollar is...
One penny is
10 cents
5 cents
50 cents
1 cent
One dime is....
10 cents
One nickel is...
5 cents
Value for money
Mankind
Commodity... International commodities mr…
Confiscate
Banknotes
N 人類
N 商品
V 沒收
N 紙鈔
Mankind
N 人類
Commodity... International commodities mr…
N 商品
9 terms
30-Time value of money
Present Value formula?
Future value: find n when interest is…
Future value: find i when compounded?
Ordinary annuity
PV=FV/(1+r)^n
n=number of compounding periods... ex: an amount over 5 years t…
i=yearly interest per period... ex: i=6% for amount that compou…
Series of equal payment to be received at the end of the period
Present Value formula?
PV=FV/(1+r)^n
Future value: find n when interest is…
n=number of compounding periods... ex: an amount over 5 years t…
Money - Value and Identification
Value of a penny.
Value of a nickel.
Value of a dime.
Value of a quarter.
1 ¢
5 ¢
10 ¢
25 ¢
Value of a penny.
1 ¢
Value of a nickel.
5 ¢
24 terms
Value and Price. Money Phrases
bargain
credit
debt
fortune
something you buy that costs much less than normal
the ability of a customer to obtain goods or services before…
an obligation to pay or do something
a very large amount of money
bargain
something you buy that costs much less than normal
credit
the ability of a customer to obtain goods or services before…
Money values
Present Value
Future Value Continuous Income Stream
Capital Value
Continuous Income Stream
∫0>T f(t)e∧-rt
e∧rT ∫0>T f(t)e∧-rt
∫0>∞ f(t)e^-rt
∫0>x f(t)
Present Value
∫0>T f(t)e∧-rt
Future Value Continuous Income Stream
e∧rT ∫0>T f(t)e∧-rt
15 terms
Time Value of Money
Present Value
Future Value
Interest Rate
Symbol for Time
earlier money on a time line ... -Cash Outflow ... PV
later money on a time line ... Cash inflow ... FV
exchange rate between earlier money and later money ... I/Y
N
Present Value
earlier money on a time line ... -Cash Outflow ... PV
Future Value
later money on a time line ... Cash inflow ... FV
Time Value of Money
Time value of money
Discount
Interest rate
Opportunity cost
As a topic in investment mathematics deals with equivalence r…
Cut the value of a payment based on how much time passes befo…
A rate of return that reflects the relationship between diffe…
The value that investors forego by choosing a particular cour…
Time value of money
As a topic in investment mathematics deals with equivalence r…
Discount
Cut the value of a payment based on how much time passes befo…
12 terms
Money Identification and Value
Nickel
Penny
Dime
Quarter
Nickel
Penny
15 terms
Time Value of Money
Future Value
compounding
interest on interest
compound interest
The amount an investment is worth after one or more periods.
The process of accumulating interest in an investment over ti…
Interest earned on the reinvestment of previous interest paym…
Interest earned on both the initial principal and the interes…
Future Value
The amount an investment is worth after one or more periods.
compounding
The process of accumulating interest in an investment over ti…
time.value.of.money
Amortized Loan
Annuity
Compound annuity
Compounding
a loan paid off in equal installments composed of both princi…
a series of equal payments; these payments are made at the en…
an investment that involves depositing the same amount of mon…
the number of periods during the year where interest is calcu…
Amortized Loan
a loan paid off in equal installments composed of both princi…
Annuity
a series of equal payments; these payments are made at the en…
6 terms
Time Value of Money
Future value of money
Simple Interest
Compound Interest
Principal
the amount of money to which an investment (or debt) will gro…
interest earned only on the original money (principal) that y…
interest earned on the original (principal) investment or amo…
The amount of money you invest or borrow
Future value of money
the amount of money to which an investment (or debt) will gro…
Simple Interest
interest earned only on the original money (principal) that y…
6 terms
Time Value of Money
Time Value of Money
Theory of Equivalence diagram
Theory of Equivalence
P, F, A, n, i
money can be invested at certain interest rate... money can be…
Monies collected at different times can be compared... For eval…
P - Present Value... F - Future Value... A - Periodic Payment n - N…
Time Value of Money
money can be invested at certain interest rate... money can be…
Theory of Equivalence diagram
14 terms
Time Value of Money
Principal
Fixed Interest Rate
Risk
Inflation
The original amount of money invested or saved.
The rate will not change for the lifetime of the investment.
The uncertainty of the outcome of an investment.
The steady rise in the general level of prices.
Principal
The original amount of money invested or saved.
Fixed Interest Rate
The rate will not change for the lifetime of the investment.
10 terms
Time Value of Money
Time value of money
Interest Rate
Risk
Inflation
States that a dollar has a greater value at the present time…
Amount of money that will be paid to an investor for allowing…
The amount of uncertainty in the investment and its future gr…
The rise of the price of goods and services in our economy.
Time value of money
States that a dollar has a greater value at the present time…
Interest Rate
Amount of money that will be paid to an investor for allowing…
7 terms
Finance: Time Value Of Money
Present value (PV)
Future value (FV)
Cash flows
Time value of money
Moving money backward in time to calculate a value today
Moving money forward in time to calculate a value at a specif…
A series of cash payments received or paid out
Money today is worth more than the same money in the future
Present value (PV)
Moving money backward in time to calculate a value today
Future value (FV)
Moving money forward in time to calculate a value at a specif…
34 terms
Time Value of Money
PV Equation
FV Equation
DCF Equation
Annuity
PV = FV/(1+r)^t
FV=PV(1+r)^n
Cash payments of equal amounts over equal time intervals
PV Equation
PV = FV/(1+r)^t
FV Equation
FV=PV(1+r)^n
Decision Making & Value of Money
Rational decision
Self-interest
Net Benefit
Marginal Benefit
benefits the decision maker as much as possible
an individual makes decisions for his or her own benefit
benefits (measured in dollars) minus the cost of the choice
the additional benefit of doing something one more time
Rational decision
benefits the decision maker as much as possible
Self-interest
an individual makes decisions for his or her own benefit
9 terms
Economics and Time Value of Money
Principal
Compound Interest
Economics
Time Value of Money
Finance. a capital sum, as distinguished from interest or pro…
interest paid on both the principal and on accrued interest.
(used with a singular verb) the science that deals with the p…
what the money is worth at that time
Principal
Finance. a capital sum, as distinguished from interest or pro…
Compound Interest
interest paid on both the principal and on accrued interest.
11 terms
Interest/time value of money
Time value of money
Rule of 72
Annual Percentage Rate (APR)
Usury laws
Money is worth more today than the same amount of money in th…
Tool that helps you figure out how long it will take to doubl…
The true cost of credit that must disclosed on the loan agree…
Laws against charging unfair interest rates for loans
Time value of money
Money is worth more today than the same amount of money in th…
Rule of 72
Tool that helps you figure out how long it will take to doubl…
17 terms
time value of money
bank
cash
compound Interest
compounding
a financial institution that provides various products and se…
money in the form of paper currency or coins (as distinct fro…
earning interest on interest through reinvesting. The result…
the process of leaving an initial investment plus accumulated…
bank
a financial institution that provides various products and se…
cash
money in the form of paper currency or coins (as distinct fro…
57 terms
The Time Value of Money
What is an Interest Rate?
real risk-free rate
inflation premium
default risk
1) The price of money or required rate of return... 2) An opport…
delaying consumption
the loss of purchasing power
the risk of getting stiffed
What is an Interest Rate?
1) The price of money or required rate of return... 2) An opport…
real risk-free rate
delaying consumption
6 terms
Time Value of Money
Future Value of a Single Amount
Future Value of Annuity Due
Future Value of an Ordinary Annuity
Present Value
Future Value of a Single Amount
Future Value of Annuity Due
Time Value of Money
future value
The only feasible purpose of financial…
The objective of wealth maximization t…
Financial management mainly focuses on
the amount of money in the future that an amount of money tod…
Wealth Maximization
Amount of returns expected... Timing of anticipated returns... Risk…
All elements of acquiring and using means of financial resour…
future value
the amount of money in the future that an amount of money tod…
The only feasible purpose of financial…
Wealth Maximization
26 terms
Chapter 4 Time Value of Money
Time Value of Money
Compounding
Discounting
Perpetuity
The idea that it is only possible to compare cash flows occur…
The process of moving cash forward in time over more than one…
The process of moving cash backwards in time. When interest r…
A stream of cash flows that is received over equal, periodic…
Time Value of Money
The idea that it is only possible to compare cash flows occur…
Compounding
The process of moving cash forward in time over more than one…
Understanding the value of money
Nickel
Dime
Penny
Half-Dollar
Value of 5 cents
Value of 10 cents
Value of 1 cent
Value of 50 cents
Nickel
Value of 5 cents
Dime
Value of 10 cents
Time Value of Money
Time Value of Money
simple interest
compound interest
future value
the interest causes the value of money received today to be g…
interest that you earn on the initial investment only ... simple…
interest you earn on the initial investment and on the previo…
how much an amount today will grow to be in the future
Time Value of Money
the interest causes the value of money received today to be g…
simple interest
interest that you earn on the initial investment only ... simple…
7 terms
Money Value Test
今天香蕉怎卖?... 今天香蕉斤二元九十九毛。
今天西瓜怎么卖?... 今天西瓜一个五块半。
今天橘子一斤多少钱?... 今天橘子一斤三元三毛。
这菠萝一个多少钱?... 一个一元九毛。
What is the price for the bananas today? ... Today they are $2.9…
How much is the watermelon today?... Today the watermelon is $5.…
How much is the peach per pond today?... Today the peach is $3.3…
How much is this pineapple?... The pineapple is $1.90.
今天香蕉怎卖?... 今天香蕉斤二元九十九毛。
What is the price for the bananas today? ... Today they are $2.9…
今天西瓜怎么卖?... 今天西瓜一个五块半。
How much is the watermelon today?... Today the watermelon is $5.…
Time Value of Money
Future Value of a Lump Sum
Present Value of a Lump Sum
Future Value of an Ordinary Annuity
Future Value of an Annuity Due
= present value X FV factor i,n... We know the value of some amo…
= future value X PV factor i,n... We know the value of some amou…
= payment X FV annuity factor i,n... We want to know the value o…
= payment X FV annuity factor i,n X (1 + i)... We want to know t…
Future Value of a Lump Sum
= present value X FV factor i,n... We know the value of some amo…
Present Value of a Lump Sum
= future value X PV factor i,n... We know the value of some amou…
Time Value of Money
time value of money
present value
Notes
Leases
relationship between time and money
being able to compare today's dollar and tomorrows dollar on…
valuing noncurrent receivables and payables that carry no sta…
assets and obligations to be capitalized under long-term leas…
time value of money
relationship between time and money
present value
being able to compare today's dollar and tomorrows dollar on…
21 terms
Time Value of Money
Simple Interest
Compound Interest
Four Time Value Money Cases
Future Value (lump sum) =
P x R x T
Earns interest on both principal invested as well as all prev…
1. Future Value of a lump sum... 2. Present Value of a lump sum…
Present Value x Future Value Factor(i,n)
Simple Interest
P x R x T
Compound Interest
Earns interest on both principal invested as well as all prev…
Time Value of Money
Future Value of a Lump Sum
Future value Lump Sum Equation
FV Lumpsum Factor w/o table
Present Value of a Lump Sum
We want to know the value of some amount today and we want to…
FV = PV * FV factor
(1 + i)^n
We know the value of some amount in the future and we want to…
Future Value of a Lump Sum
We want to know the value of some amount today and we want to…
Future value Lump Sum Equation
FV = PV * FV factor
Time Value of Money
Future Value
Compound Interest
Principal
Present Value
The value at a given future date of an amount placed on depos…
Interest that is earned on a given deposit and has become par…
Amount of money on which interest is paid
The current dollar value of a future amount. The amount of mo…
Future Value
The value at a given future date of an amount placed on depos…
Compound Interest
Interest that is earned on a given deposit and has become par…
21 terms
Time value of money
To discount
Interest rate can be
How interest rate being composed
Real risk free interest rate
To cut it value based on how much time passes before the mone…
1. Rate of return... 2. Discount rate... 3. Opportunity cost
R=real risk-free interest rate + inflation premium+ defailt r…
Single-period interest rate if no inflation were expected... =ti…
To discount
To cut it value based on how much time passes before the mone…
Interest rate can be
1. Rate of return... 2. Discount rate... 3. Opportunity cost
13 terms
Time Value of Money
time value of money
compounded interest
necessary adjustments to i and n
future value of a lump sum
compounded interest
earns interest on both principal invested as well as all prev…
i % number of compounds per year... n * number of compounds per…
pv * future value factor (i, n)
time value of money
compounded interest
compounded interest
earns interest on both principal invested as well as all prev…
16 terms
Time Value of Money Terms
Interest Rate
Simple Interest
Compounded Interest
Accumulation Function
Interest rate is the amount charged, expressed as a percentag…
=P*(1+i)(n)
=P*(1+i)^n
The amount an investment currently holds. ... Interest accumulat…
Interest Rate
Interest rate is the amount charged, expressed as a percentag…
Simple Interest
=P*(1+i)(n)
Time Value of Money
The purpose of this topic is to develo…
Time value is associated with money
Dollar now or later?
the value that you would accept today
Serves as a basis for almost all other topics covered in this…
= the value of a particular sum of money changes as time passes
now ensure receipt (risk)... higher value (inflation)... could use…
present value
The purpose of this topic is to develo…
Serves as a basis for almost all other topics covered in this…
Time value is associated with money
= the value of a particular sum of money changes as time passes
22 terms
Time Value of Money
Time Value of Money =
Compound Interest
Simple Interest
Future Value of a Lump Sum
Compund Interest
Earns interest on the original principal AND previously earne…
Principle x Rate x Time... * interest earned is based on the ori…
We know the value of some amount today and we want to know wh…
Time Value of Money =
Compund Interest
Compound Interest
Earns interest on the original principal AND previously earne…
Time Value of Money
Lump Sum
greater
Increases.... Because there are more com…
Lower. ... More return. Less invested
a single cash flow at one point in time.
The greater the risk, the ____ the return
As N increases, the future value ____... Why?
The greater the rate, the ____ the present value
Lump Sum
a single cash flow at one point in time.
greater
The greater the risk, the ____ the return
1 of 10