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Using Boundless Presentations The Appendix The appendix is for you to use to add depth and breadth to your lectures. You can simply drag and drop slides from the appendix into the main presentation to make for a richer lecture experience. Free to edit, share, and copy Feel free to edit, share, and make as many copies of the Boundless presentations as you like. We encourage you to take these presentations and make them your own. Free to share, print, make copies and changes. Get yours at Boundless Teaching Platform Boundless empowers educators to engage their students with affordable, customizable textbooks and intuitive teaching tools. The free Boundless Teaching Platform gives educators the ability to customize textbooks in more than 20 subjects that align to hundreds of popular titles. Get started by using high quality Boundless books, or make switching to our platform easier by building from Boundless content pre-organized to match the assigned textbook. This platform gives educators the tools they need to assign readings and assessments, monitor student activity, and lead their classes with pre-made teaching resources. Get started now at: If you have any questions or problems please

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Single-Period Investment Multi-Period Investment Calculating Future Value Approaches to Calculating Future Value Future Value, Single Amount The Time Value of Money > Future Value, Single Amount Free to share, print, make copies and changes. Get yours at ect&utm_source=boundless

Single-period investments use a specified way of calculating future and present value. Single-period investments take place over one period (usually one year). In a single-period investment, you only need to know two of the three variables PV, FV, and i. The number of periods is implied as one since it is a single-period. Single-Period Investment Free to share, print, make copies and changes. Get yours at investment ?campaign_content=book_192_section_55&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boundle ss View on Boundless.com The Time Value of Money > Future Value, Single Amount

Investments that accrue simple interest have interest paid based on the amount of the principal, not the balance in the account. Investments that accrue compound interest have interest paid on the balance of the account. This means that interest is paid on interest earned in previous periods. Simple interest increases the balance linearly, while compound interest increases it exponentially. Multi-Period Investment Free to share, print, make copies and changes. Get yours at investment ?campaign_content=book_192_section_55&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boundl ess Simple Interest Formula View on Boundless.com The Time Value of Money > Future Value, Single Amount

The future value is the value of a given amount of money at a certain point in the future if it earns a rate of interest. The future value of a present value is calculated by plugging the present value, interest rate, and number of periods into one of two equations. Unless otherwise noted, it is safe to assume that interest compounds and is not simple interest. Calculating Future Value Free to share, print, make copies and changes. Get yours at value ?campaign_content=book_192_section_55&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boundl ess Compound Interest View on Boundless.com The Time Value of Money > Future Value, Single Amount

The "present" can be moved based on whatever makes the problem easiest. Just remember that moving the date of the present also changes the number of periods until the future for the FV. To find FV, you must first identify PV, the interest rate, and the number of periods from the present to the future. The interest rate and the number of periods must have consistent units. If one period is one year, the interest rate must be X% per year, and vis versa. Approaches to Calculating Future Value Free to share, print, make copies and changes. Get yours at calculating-future-value ?campaign_content=book_192_section_55&campaign_term=Finance&utm_campaign=powerpoint&utm_medium=direct&utm_source=boundl ess Compound Interest View on Boundless.com The Time Value of Money > Future Value, Single Amount

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Key terms accrue To add, or grow. compound interest Interest, as on a loan or a bank account, that is calculated on the total on the principal plus accumulated unpaid interest. Multi-period investment An investment that takes place over more than one periods. Periods (t or n) Units of time. Usually one year. principal The money originally invested or loaned, on which basis interest and returns are calculated. quarter A period of three consecutive months (1/4 of a year). Single-period investment An investment that takes place over one period, usually one year. Free to share, print, make copies and changes. Get yours at The Time Value of Money

Simple Interest Formula Simple interest is when interest is only paid on the amount you originally invested (the principal). You don't earn interest on interest you previously earned. Free to share, print, make copies and changes. Get yours at Wikipedia. "Future value." GNU FDL View on Boundless.comGNU FDLhttp://en.wikipedia.org/wiki/Future_valueView on Boundless.com The Time Value of Money

Compound Interest Interest is paid at the total amount in the account, which may include interest earned in previous periods. Free to share, print, make copies and changes. Get yours at Wikipedia. "Future value." GNU FDL View on Boundless.comGNU FDLhttp://en.wikipedia.org/wiki/Future_valueView on Boundless.com The Time Value of Money

Compound Interest Interest is paid at the total amount in the account, which may include interest earned in previous periods. Free to share, print, make copies and changes. Get yours at Wikipedia. "Future value." GNU FDL View on Boundless.comGNU FDLhttp://en.wikipedia.org/wiki/Future_valueView on Boundless.com The Time Value of Money

Simple Interest Formula Simple interest is when interest is only paid on the amount you originally invested (the principal). You don't earn interest on interest you previously earned. Free to share, print, make copies and changes. Get yours at Wikipedia. "Future value." GNU FDL View on Boundless.comGNU FDLhttp://en.wikipedia.org/wiki/Future_valueView on Boundless.com The Time Value of Money

Simple Interest Formula Simple interest is when interest is only paid on the amount you originally invested (the principal). You don't earn interest on interest you previously earned. Free to share, print, make copies and changes. Get yours at Wikipedia. "Future value." GNU FDL View on Boundless.comGNU FDLhttp://en.wikipedia.org/wiki/Future_valueView on Boundless.com The Time Value of Money

Compound Interest Interest is paid at the total amount in the account, which may include interest earned in previous periods. Free to share, print, make copies and changes. Get yours at Wikipedia. "Future value." GNU FDL View on Boundless.comGNU FDLhttp://en.wikipedia.org/wiki/Future_valueView on Boundless.com The Time Value of Money

Free to share, print, make copies and changes. Get yours at The Time Value of Money You have $300,000 that you want to invest in a one year Certificate of Deposit (CD) with a 4% annual interest rate. What will be the value of that CD in a year? A) $312,000 B) $420,000 C) $301,200 D) $315,000

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// The Time Value of Money You have $300,000 that you want to invest in a one year Certificate of Deposit (CD) with a 4% annual interest rate. What will be the value of that CD in a year? A) $312,000 B) $420,000 C) $301,200 D) $315,000

Free to share, print, make copies and changes. Get yours at The Time Value of Money What is the future value in 30 years of $100,000 invested today in a savings account earning a 1% compound interest rate every year (rounded up to the nearest dollar)? A) B) C) D) More than $134785

Free to share, print, make copies and changes. Get yours at Saylor OER. "Business Administration « Saylor.org – Free Online Courses Built by Professors." CC BY BY The Time Value of Money What is the future value in 30 years of $100,000 invested today in a savings account earning a 1% compound interest rate every year (rounded up to the nearest dollar)? A) B) C) D) More than $134785

Free to share, print, make copies and changes. Get yours at The Time Value of Money You plan to invest $100,000 in a 3 year Certificate of Deposit that has a 5% compound interest rate. What is its future value? A) $115,000 B) $105,000 C) $115,763 D) $115,927

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// The Time Value of Money You plan to invest $100,000 in a 3 year Certificate of Deposit that has a 5% compound interest rate. What is its future value? A) $115,000 B) $105,000 C) $115,763 D) $115,927

Free to share, print, make copies and changes. Get yours at The Time Value of Money You plan to invest $100,000 in a 3 year Certificate of Deposit that has a simple interest rate of 5%. What is its future value? A) $115,763 B) $105,000 C) $115,000 D) $115,927

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// The Time Value of Money You plan to invest $100,000 in a 3 year Certificate of Deposit that has a simple interest rate of 5%. What is its future value? A) $115,763 B) $105,000 C) $115,000 D) $115,927

Free to share, print, make copies and changes. Get yours at The Time Value of Money The future value concept answers which of the following questions? A) How much money will you have in 10 years if you invest $10,000 today earning 10% as interest every year? B) All of these answers C) How much money will you have in 10 years if you invest $10,000 every year at 10% interest every year? D) How much money will you have in 10 years if you invest $10,000 every year at 10% net return?

Free to share, print, make copies and changes. Get yours at Saylor OER. "Business Administration « Saylor.org – Free Online Courses Built by Professors." CC BY CC BY 3.0http:// The Time Value of Money The future value concept answers which of the following questions? A) How much money will you have in 10 years if you invest $10,000 today earning 10% as interest every year? B) All of these answers C) How much money will you have in 10 years if you invest $10,000 every year at 10% interest every year? D) How much money will you have in 10 years if you invest $10,000 every year at 10% net return?

Free to share, print, make copies and changes. Get yours at The Time Value of Money Which of the following is the correct formula for calculating future value with simple interest? A) FV = PV * (1+i)t B) FV = PV * (1+i*t) C) FV = PV * i D) All of these answers

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// The Time Value of Money Which of the following is the correct formula for calculating future value with simple interest? A) FV = PV * (1+i)t B) FV = PV * (1+i*t) C) FV = PV * i D) All of these answers

Free to share, print, make copies and changes. Get yours at The Time Value of Money What is the future value in 30 years of $100,000 invested today in a savings account earning a 1% simple interest rate every year (rounded up to the nearest dollar)? A) 30,000 B) 134,785 C) 130,000 D) More than $134,785

Free to share, print, make copies and changes. Get yours at Saylor OER. "Business Administration « Saylor.org – Free Online Courses Built by Professors." CC BY BY 3.0http:// The Time Value of Money What is the future value in 30 years of $100,000 invested today in a savings account earning a 1% simple interest rate every year (rounded up to the nearest dollar)? A) 30,000 B) 134,785 C) 130,000 D) More than $134,785

Free to share, print, make copies and changes. Get yours at The Time Value of Money A period of three consecutive months (1/4 of a year). A) quarter B) Discounting C) perpetuity D) annuity

Free to share, print, make copies and changes. Get yours at Boundless Learning. "Boundless." CC BY-SA BY-SA 3.0http:// The Time Value of Money A period of three consecutive months (1/4 of a year). A) quarter B) Discounting C) perpetuity D) annuity

Free to share, print, make copies and changes. Get yours at The Time Value of Money You decide to make an investment on a bond that pays 5% interest on the principal only. Which of the following describes how interest accrues on this investment? A) Compound interest. B) Simple interest. C) Incepted interest. D) All of these answers.

Free to share, print, make copies and changes. Get yours at Boundless - LO. "Boundless." CC BY-SA BY-SA 3.0http:// The Time Value of Money You decide to make an investment on a bond that pays 5% interest on the principal only. Which of the following describes how interest accrues on this investment? A) Compound interest. B) Simple interest. C) Incepted interest. D) All of these answers.

Attribution Wikipedia. "Future value." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Future_value Boundless Learning. "Boundless." CC BY-SA BY-SA 3.0http:// Boundless Learning. "Boundless." CC BY-SA BY-SA 3.0http:// Boundless Learning. "Boundless." CC BY-SA BY-SA 3.0http:// Wikipedia. "Future value." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Future_value Wikipedia. "Future value." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Future_value Wiktionary. "compound interest." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/compound+interest Wikipedia. "Future value." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Future_value Wiktionary. "accrue." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/accrue Wiktionary. "principal." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/principal Wikipedia. "Future value." CC BY-SA BY-SA 3.0http://en.wikipedia.org/wiki/Future_value Wiktionary. "quarter." CC BY-SA BY-SA 3.0http://en.wiktionary.org/wiki/quarter Free to share, print, make copies and changes. Get yours at The Time Value of Money