BUS401 Principles of finance

Calculate:

• Calculate a time value of money problem and the equation provided for each problem. The equations listed are in the textbook throughout Chapter 4 using the notations 4.XX for each formula, and in the Chapter 4 Summary.

• Write:
  • Write out each step you used to solve the problem you were assigned, and provide the solution to the problem as well.
    • Present your final solution as a decimal approximation carried out to the second decimal point (e.g., $000.00).
  • Explain the meaning of the problem and your solution in your own words.
  • Explain your answers to the following questions:
    • If the rate in the problem was higher, would the solution be higher or lower?
    • If the time period in the problem was shorter, would the solution be higher or lower?
  • Describe an element of this problem that was challenging to you.
  • Ask at least one question about time value of money mathematics.