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The concept of time value of money has numerous “real-world” applications. Some of the applications range from calculating the payment for a car or mortgage to estimating what interest rate is needed on an investment to send your child to college in 20 years.
In your discussion, respond to the following two questions:
- Do you believe the concept of time value money is important in ordinary business relationships? Explain.
- How would you use a concept of time value to determine the value of the business?
150 word minimum for the discussion post above
For this part of the course project, you will demonstrate your understanding of the time value of money.
In your role as a financial advisor at Eagle Consulting, you will be meeting a potential customer, Keith Jones. Mr. Jones customer is 35 years old and married with two children, and he would like your help in planning a long-term investment strategy with the $100,000 he has to invest. In advance of your meeting, you decide to create a PowerPoint presentation that will educate Mr. Jones on the underpinnings of the time value of money. In doing so, your goal is to help your client understand the basic construct that a dollar today is more valuable than a dollar received tomorrow.
To complete this assignment, do the following:
- Refer to the Eagle Consulting Info Sheet attached below
- Develop a 6-screen PowerPoint presentation with accompanying lecture notes that:
- Explains the concept of the time value of money
- Provides examples of how time value of money calculations are determined
The presentation should include the following slides and accompanying lecture notes. The slide content should be brief and include supporting images or diagrams where appropriate. Use the Notes area beneath each slide to put the accompanying lecture notes for the slide.
Slide |
Content |
1 |
Title Slide |
2 |
Slide Content: Main ideas of the time value of money Lecture Notes (100-150 words)
|
3 |
Slide Content: Step-by-step example of a present value calculation using numbers Lecture Notes (100-150 words):
|
4 |
Slide Content: Step-by-step example of a future value calculation using numbers Lecture Notes (100-150 words):
|
5 |
Slide Content: Identify impacts of compounding on the calculation of present value and future value Lecture Notes (100-150 words):
|
6 |
Slide Content: Summarize the main points of the time value of money concepts. Lecture Notes (100-150 words):
|

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