discuss-and-show-one-example-of-how-the-present-value-formula-is-a-good-method-to-determine-how-much-is-needed-to-save-monthly-in-order-to-have-a-specified-sum-of-money-at-retirement-age-in-25-years-at-8-interest

Due Thursday

Respond to the following in a minimum of 175 words:

Time value of money is a financial concept that illustrates how the value of money grows over time. This takes into consideration that the money can be invested at a specified interest rate, that grows. One financial concept is present value (PV) and another financial concept is future value (FV).

• Discuss and show one example of how the present value formula is a good method to determine how much is needed to save monthly, in order to have a specified sum of money at retirement age in 25 years at 8% interest.
• Discuss and show one example of how the future value formula is a good method to determine how much of a lump sum is needed today, to invest for 25 years to reach a specified retirement amount, with 8% interest.

Due Monday

Reply to at least 2 of your classmates. Be constructive and professional in your responses.

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