Db 4
Topic: Time Value of Money, Practical Applications in Business and Personal Decisions
If you have put money into the stock or bond market or into a savings account; made monthly auto or mortgage payments; or paid down your student loan ahead of time, you have inherently applied TVM.
· Discuss how you may have used TVM in a recent investment or loan decision, and explain some of the TVM details that may have been involved in your transaction.
· If you have not used TVM in the past financial transactions, explain potential TVM applications you would encounter in future business or personal transactions.
· Show the math you would use to make these decisions based on today’s economy.
Your initial discussion post must include one outside resource, which may include the Internet or Library, and must be cited according to current APA formatting.
DB 5
Topic: Compounding Interest and the Banker
There are many factors influencing the cost of money for both individuals and corporations.
In some cases, cash flows are received in advance, and in other cases, cash flows are received at the end of a period. In other cases, cash flows are received quarterly, semi-annually, or yearly. How often interest compounds also affects the cost of money.
· Find out what your bank is currently paying in interest on a savings account and when they pay this interest.
· Report how your bank collects interest on their consumer loans.
· Explain how the way they collect and pay interest affects interest compounding and the cost of capital.
Your initial discussion post must include one outside resource, which may include the Internet or Library, and must be cited according to current APA formatting.
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