PPT-Chapter 2 Interest and Future Value

The objectives of this chapter are to enable you to Understand the relationship between interest and future value Calculate future values based on single investments . Then there exists a number in ab such that The idea behind the Intermediate Value Theorem is When we have two points af and bf connected by a continuous curve The curve is the function which is Continuous on the interval ab and is a numb value value value value value value Year Year Year Year Year Year Deflated final value 100 100 100 value Year 3 Year Year Year value STD Annual real growth rate 100 100 value value Year Year Year Average annual percentage growth rate 100 value Alessandro . Sorniotti. Refik. . Molva. SAC’10 March 22-26 2010,Sierre, Switzerland.. Copyright 2010 ACM 978-1-60558-638-0/10/03. 1. Introduction. 2.Design of the SIG(secret interest group) framework. Time value of money. Basic interest concepts. Present and future values. Single payment. Annuity (ordinary and due). Applications. 1. Time value of money. Investors expect that money invested should grow, i. e., earn a return, over time. The . “I don’t believe in . princerple. , But oh I du in interest.”. James Russell Lowell.  . “My interest is in the future because I am going to . spend the rest of my life there.”. Charles F. Kettering. Finances Part I. Sales Tax. Optional for individual states.. How to compute sales tax:. (Total cost of item) x (percent of sales tax) = amount of sales tax. Cost of item + amount of sales tax = register price. Utility For Importer & Exporter. NEHA ABHISHEK, BANGALORE. Batch: 22, (5. th. July to 30. th. August, 2014). Agenda. Derivatives. List of Derivatives under various . categories. Concept of Hedging. Interest Rate Hedges. 1 June, depositing in 5 months. So buy December. . = 19. On 1 June we buy 19 December contracts. On 1 November we will sell. Price 96.60. Basis risk 60 ticks. By 1 November basis risk will fall by 5/7, leaving 17. “I don’t believe in . princerple. , But oh I du in interest.”. James Russell Lowell.  . “My interest is in the future because I am going to . spend the rest of my life there.”. Charles F. Kettering. Criterion-Related Validation. Regression & Correlation. What’s the difference between the two?. Significance . Testing. Type I and type II errors. Statistical power to reject the null. . Chapter 6 Predicting Future Performance. Ben Trnka/Boz Bostrom. www.benandboz.com. . Liabilities will differ by company and industry. Overview. Understand how to account for liabilities. Understand how to compute future value of a single amount and an annuity. Chapter 3 Understanding and Appreciating the Time Value of Money Professor Payne, Finance 4100 Learning Objectives Explain the mechanics of compounding. Understand the power of time and the importance of the interest rate in compounding. Chapter 5 Formulas Introduction to Valuation: The Time Value of Money McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Key Concepts and Skills Be able to compute the future value of an investment made today Directions: Select the most appropriate answer for each question.. Which would you rather have?. $100 today. $100 one year from today. If the interest rate is 5%, $100 today is basically equal to ___ one year from now..