Time Value of Money - 967 Words

Time 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 companies use the time value of money, such as commercial banks, credit card companies, insurance companies, retirement advisors, and the state government. As an individual or company, the importance of understanding how each of these company’s†¦show more content†¦All contributions and earnings are tax deferred meaning taxes are only incurred when the money is withdrawn. An individual can determine how much would be needed for retirement by determining the future value so that one will know how much one’s money will be worth using an estimate of time at a certain interest rate. This calculation is important for determining how much money will be needed for the future because of inflation. Lastly, the government also has a use for the time value of money concept. Today the economy is struggling and said to be headed towards a recession. One way to stimulate the economy is to increase consumer spending, to accomplish more consumer spending the government is contemplating a tax rebate for taxpayers. â€Å"Our system of money operates on a mutual set of beliefs; so long as enough of us believe in the future value of money the system will work† (Moffatt, 2007). The government is now budgeting to decide whether the tax rebate would increase the future value of the dollar and stimulate consumer spending. References Bankrate, (2008). The true cost of paying the minimum. Retrieved January 25, 2008, from www.Bankrate.com Web site: http://www.bankrate.com/brm/calc/MinPayment.asp#More Block, S., Hirt, G. (2005). Foundations of Financial Management (11th ed.).Burr Ridge, IL: Irwin/McGraw-Hill. Moffatt, M (2007). Why does money have value?. Retrieved January 26, 2008, from About.com: EconomicsShow 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 Money2180 Words   |  9 PagesFinance 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 whichRead 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

The Ethics of Prison Privatization - 2393 Words

How true is Christie’s warning that an increasingly privatized penal service threatens the ethics and effectiveness of the criminal justice system? More aspects of the penal system are now privatized, and are set to increase. This includes the privatization of such services as prisons, electronic tags, catering companies, probation work or prison escort services. David Taylor-Smith, head of the world’s biggest security firm, G4S says he expects private companies will be running large parts of the UK’s police service within five years (Taylor and Travis, 2012). Nils Christie’s text (2000) â€Å"Crime Control as Industry† draws upon increasing prison populations in the US. However reflecting upon that the prison population in England and†¦show more content†¦The quotas insure private companies make a profit and reduce financial risk, though if the required occupancy rate is not met the outcome can be very negative for taxpayers, for example in the state of Colorado, due to three private prisons that didn’t meet the quota cost it taxpayers $2 million (In the Public Interest, 2013, 2). Cri minal justice activists argue that the quotas promote legislation that push incarceration and negatively affect sentencing and criminal justice reforms (Lynch, 2013) and budgets are spent on bed space rather than important social services. In 2008 a kids for cash scandal unfolded in Pennsylvania where judges Mark Ciavarella and Michael Conahan pleaded guilty to tax evasion and wire fraud. These offences involved an agreement between the judges and two private detention centres that they will be responsible for sending thousands of juveniles for a $2.6 million kickback (Urbina, 2009, 1). Judge Ciavarella sentenced juveniles to detention twice the state average in order to keep up with the deal. Both judges sent children to detention centres for minor offences that would usually be served with light punishment such as community service (Urbina, 2009, 2). Christie (2000, 14) believes that â€Å"the size of the prison population is a result of decisions. We are free to choose†, his conviction is veryShow MoreRelatedIts Time to Privatize Colombian’s Prisons2566 Words   |  11 Pageslack of prisons spaces, poor condition within the prisons, and the state responsibilities of running prisons services adequatel y, by the figure of prison privatization. (Cavadino, M. and Dignan, J. 2007) The figure of contracting out has been well described by Cavadino and Dignan in their analysis of the prison privatization. This model involves the private sector in the penal system, by giving to it certain responsibilities, such as, auxiliary services, design and construction of prisons, basicRead MoreEssay about The Public-Private Prison Debate2326 Words   |  10 PagesCalifornia is suffering from a crisis in the prison system. Its facilities are operating at double capacity and grossly deficient medical care is the cause of at least one inmate death per week (Wood, 2008, para. 2). Because of this need for reform, the federal government is stepping in to direct the state prison’s operating procedure. Although the financial choices of each state should be free from federal control, the federal government is still known to put pressure on states to make decisionsRead MoreStakeholder Analysis Essay1335 Words   |  6 PagesPRIVATE PRISON CORPORATION OF AMERICA Nowadays, we are facing a major experiment in privatization. For example, private companies have entered the business of managing public schools, or religious schools. Also, they even run in prison industry. Among them is Private Prison Corporation of America, which is growing fast in prison industry in the United States. Especially, immigration detention business has brought up massive profit for Private Prison of America. Therefore, corporation is planningRead MoreThe American Correctional Facility System Essay1107 Words   |  5 Pagesmanage the prisons and probation offices. Americans complain about crime and the expenses it costs the general public, not realizing where the problem stands. But If Americans really want to make a resolve crime problem, we need to change the penal system, amend the laws and statutes, and enforce ethics in the legal system. American prison inmates provided with some luxuries that may not be available to them in the free world, there is a select group who gets special treatment Prisons offer heatRead MoreThe Article Sharks, Saints, And Samurai : The Power Of Ethics1084 Words   |  5 PagesReview on Ethics and Negotiations The article Sharks, Saints, and Samurai: The Power of Ethics in Negotiations, gives three techniques of negotiation. The first being the â€Å"sharks† who are very tactical and want to win every negotiation. The second are the â€Å"saints† who believe in building a relationship with their opponents and base their tactics on ethical standards, which in the end ensure fairness. The third is the â€Å"samurai† who negotiate with the principle, â€Å"of doing the right thing for itsRead MoreDeath Penalties Throughout History1443 Words   |  6 Pagescan most certainly provide a more useful outcome to such a dark decision. As 18 of the great United States of America have already shown, a large portion of Americans strongly opposes the death penalty, but not merely for ethical reasons. Of course, ethics are still a huge portion of the decision on capital punishment. Mahatma Gandhi once said, â€Å"An eye for an eye leaves the whole world blind.† This quote embodies the ethical argument made by non-violent supporters of abolishing the death penalty. ManyRead MoreDisproportionate Incarceration of African Americans Essay1673 Words   |  7 PagesAfrican Americans The disproportionate numbers of African Americans in the prison system is a very serious issue, which is not usually discussed in its totality. However, it is quite important to address the matter because it ultimately will have an effect on African Americans as a whole. Of the many tribulations that plague Americans today, the increase in the amount of African American men and women in prisons is unbelievable. It would be naà ¯ve to say that the increase is due to the factRead MoreAmerican Prison Systems: Do They Really Work?4530 Words   |  18 Pagesï » ¿American Prison Systems: Do They Really Work? Introduction: A History of American Prison Systems Prisons were among the first public buildings erected in the New World, and were considered as essential as a cemetery in every town (Lynch, n.d.). However, colonial American prisons were not houses of punishment, as they would later evolve to be (Lynch, n.d). A person who committed a crime was sent to prison only while awaiting trial, and after the trial was complete, the sentence would entailRead MorePrison Practices During The Civil War Essay1805 Words   |  8 PagesPrison practices started to become more common in the United States following the civil war in 1865, in the form of using previous slaves to work the lands, picking cottons, and more with a promise to reward them with an insignificant shares that is almost not worth it. The beneficiaries continue to take advantage of the slavery system since it is so profitable, to even the extent of utilizing prison for cheaper labor by violating the 13th amendment stating: â€Å"Neither slavery nor involuntary servitudeRead MoreG overnment Of Florida, A State Government Essay2339 Words   |  10 Pagesgovernment spending, state government information, local budgets, and state employee data. On top of all that, in January of 2011, Governor Rick Scott passed and executive order (number 11- 03) which was basically a way to fortify the FOIA and promote ethics and open government. The main ways it accomplishes these things by appointing several counsel leaders to keep the Office of the Governor accountable in all of its actions, and also by requiring the Office of Open Government to assist the general

River Valley Civilizations Free Essays

Approximately 5000 years ago the first complex, politically centralized civilizations began to form independently along numerous river valleys throughout parts of Asia and Africa. These civilizations were the building blocks for organization of human economic, political, religious, and social practices. Although the cultures of both Ancient Egypt and Shang China River Valley Civilizations share geographic, religious, and political similarities, the cultures are vastly different when social characteristics and economic trade are taken into consideration. We will write a custom essay sample on River Valley Civilizations or any similar topic only for you Order Now Both Ancient Egypt and Shang China both developed closely to major rivers. The Ancient Egyptian River Valley Civilization was located along the Nile River which helped to provide a reliable source of water for farming. The Nile River current runs north-allowing movement along the river, and the winds blow from the north allowing sailing vessels to travel against the current. It was easy to travel and interact along the Nile. When the Nile would flood, it would naturally fertilize the surround soil with nutrient deposits that gathered within the river. The same thing would occur with the Yellow and Yangzi Rivers, which were located near the Shang China civilization. This is why both civilizations flourished when it came to crop production. Near the Yangzi River, however, people had to work harder at flood control and irrigation. It is said that perhaps this stimulated a greater effort at organization. Both Ancient Egypt and Shang China were both ruled by kings, too. In Ancient Egypt, they believed that the pharaoh had all the power and influence over his people. He was considered to be divine, stood above the priests, and was the only individual who had direct contact with the gods. This is similar to how the emperor was looked at in Shang China, where he was seen as a chief priest, and he had an administrative bureaucracy, with councilors, lesser priests and diviners. Emperors and aristocrats had splendid homes with walls of pounded earth or earthen bricks while common people continued to live in their pit homes of earlier times much like how the Ancient Egyptian pharaohs were built high class pyramid tombs after they became diseased. In both civilizations, the king figure was highly important and very much valued. They were often showered with gifts. However, unlike Ancient Egypt, women had no rights in Shang China. Women held many of the same rights as the men in Egypt. Women were allowed to own their own land and to share equal property with their husband once they married. On the other hand, in Shang China, the oldest member of the family controlled the family’s property and made the important decisions. Women were inferior expected to obey fathers, husbands and then later their sons. Each women may have had between 13 and 16 marriages arranged marriages without any ability to protest it, and only by bearing sons could she improve her status. Shang China used items such as wheat, mullet, and silk, for trade, where metals were more common for trade in Ancient Egypt. The Silk Road was used to open trade between Ancient China and Rome. People in China were the first to master the development of silk and they did so by raising silk worms and then collecting the silky web that they formed. They then weaved the web together to form a more substantial material. Wheat and mullet were also common edible items used for trade in Shang China because they had suitable temperate weather along with forested land. Using metals in trade was important for Ancient Egyptians because it was plentiful and could be made into an assortment of items from weapons to tools. Egyptians did not harvest the same type of grains as those in Shang China because they had too much of a dry climate that did not allow crops such as those to thrive. How to cite River Valley Civilizations, Essay examples

Hung Liu Pollock states free essay sample

Painting is a returned gaze upon an absence, a loss that is summoned back to meet us at the surface where the painter has worked and history has been invoked. † In other words, Pollock describes Liu paintings as a reimbursed western gaze on forgotten women, reclaiming them to history by depicting them as prostitutes, mothers, and warriors. For example, Liu’s paintings give a modern spin on old Chinese values and images. Pollock’s theory of absence symbolizes the lost history of the Chinese women, which explains why Liu uses historic photographs of China as her key theme in all of her paintings. The multiple gazes layered throughout Liu’s painting Odalisque reclaim abandoned Chinese history with the use of traditional western medium. Pollock identifies three separate gazes in Odalisque, including the history of the photograph, the westernized painting techniques, and the viewer’s different perspectives of the painting. Converting the forgotten memory of a dejected Chinese prostitute and turning it into an elaborate westernized painting reclaims it to history. We will write a custom essay sample on Hung Liu Pollock states or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Although, Western furnishings along with a Victorian-style backdrop directs the viewer’s gaze away from the innocent child and replaces it with a decorated commercialized painting. Odalisque embodies an image of a Chinese prostitute and offers a comparison of forgotten Chinese history and the history of the photograph, while also presenting an eye-catching gaze to its viewers. Pollock describes Liu’s medium of fluidity as an unmovable photograph suffused with color and contrast bringing out the true beauty of the once tiny insignificant photo. With the use of traditional Chinese techniques while offering a sufficient amount of western influence, Liu’s paintings help reclaim Chinese culture to the innovative socialized public. Liu’s use of color releases the stiffness of the photograph, bringing it to life for the first time, while allowing different types of viewers to enjoy the history depicted in her paintings. For instance, In Odalisque, Pollock describes how Liu shows the young women’s pain with white rigid ends and underlining the Western furnishing with moderate colors of red and polishes the entire painting with both Chinese intellects and the motion of American innovation. Pollock explains how Liu reclaims a disregarded and hidden part of Chinese history by describing her painting â€Å"Odalisque†. In Odalisque, Pollock describes how Liu takes a conventional photograph from Chinese history and gives it a westernized spin by outlining the important concepts with color, and giving the painting life by making it larger. In her painting, Liu transforms an unspoken memory of her countries history and surrounds it with positive Western mediums and technology. Through the Historical mediation, Liu is able to reclaim and honor the once reviled past of Chinese by depicting it as a progressive striking piece of artwork. History is so important to Liu because she feels it is her duty to reclaim and celebrate her cultures history, not only to honor its great accomplishments but to retell its forgotten breakdowns. Pollock’s essay irritates many important points about Chinese history and the life of Hung Liu. However, to me the most important point vexed in Liu’s life was her use of Western Techniques