1. How is the future value related to the present value of a single sum?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 3QTD
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1. How is the future value related to the present value of a single sum? 

2. How is the present value of a single sum related to the present value of an annuity? 

3. Why does money have a time value? 

4. Does inflation have anything to do with making a dollar today worth more than a dollar tomorrow? 

5. What is a deferred annuity? 

 

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Concept

Time value of money

Time value of money means money has the value of time incorporated within itself

The value of money today is not equal to the value of money tomorrow              

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