Time Value Essay Example for Free

Time Value Essay One of the most important concepts about saving and investing is the time value of money. It can be used to compare investment alternatives and to solve problems involving loans, mortgages, leases, savings, and annuities. This means money paid out or received in the future is not equivalent to money paid out or received today because inflation erodes money’s buying power. Basically, the power of time is on a person’s side and the premise that cash in hand today is more valuable than the same amount in the future due to its capability of earning interest. There are three factors affecting how much an investment will grow: time, money, and interest rate. Time Value of Money is a concept that is very important in financial management. It affects business, personal, and government finance (Harvey, 2012) Within this paper we will discuss the definition of Time Value of Money and identifies the importance of financial managers understanding the concept. Time, Money and Interest Rates Time has an important impact on the future value of money. Time is referred to as â€Å"N†, or â€Å"number,† and signifies the number of times something happens to your money. The earlier an individual invests, the more time their investment has to compound interest and increase in value. The effects of time on the value of money need to be taken into account when assessing investments. Investments (Money) with interest rates compounding frequently will yield higher returns. The higher the interest rate, the more money an individual will earn. However, and individual must understand an investment with a higher interest rate generally has a greater risk. Risk is the uncertainty the yield on an investment will deviate from what is expected. Generally, Present and Future Price of Money 2 having a savings or investment plan with a fixed interest rate guarantees a specific return but can provide a moderate risk. The last item to take into consideration with interest rates is ensuring the interest rate is higher than the rate of inflation. Inflation is the steady rise in the general level of prices of a market basket of goods. If the average interest rates rise, the amount a person earns from this type of investment will not increase. Another consideration with interest rates is ensuring the interest rate is higher than the rate of inflation. Need for Financial Managers Anyone who manages finances in a company setting , deals with consumer finance or running their own business is a financial manager and needs to understand the concept of Time Value of Money. A financial manager’s job it to compare the cost and benefits of alternatives that occur at different times. This is done by restating money values through time in Time Value of Money calculations. These calculations estimate what effect time will have on money. For these professionals to make decisions that will assist a client in taking advantages of low interest rates or investing wisely a comprehensive knowledge and understanding of the Time Value of Money is needed. Understanding this concept allows them to make better decisions. If they don’t understand the concept then they could make an unfavorable decision resulting in loss of money for the client or their business (Time Value of Money, 2013) Future Value and Present Value As an investor, you cannot control the rate of return on an investment. The actual yield is determined by the market as a whole, in the form of people buying and selling the investments at Present and Future Price of Money 3 a price that, coupled with the investment’s payouts, determines the yield. There are two fundamental formulas used to calculate the time value of money; the â€Å"future value† and the â€Å"present value† formulas. They’re basically the same formulas, but rearranged to solve for different values. The future value formula can answer the question, ‘how much money will I have if I invest a certain amount now, at a given rate of return†? The formula is FV=PV*(1+R)N, where FV is the future value (how much you’ll have later), PV is the present value (how much you’ll have now), R is the periodic rate of return or the percentage that your money will grow in each unit period of time. N is the number of unit periods of time in the overall time span. The following are examples of the calculation of future values: a) Solve for FV $150,537. 19 invested for seven years at an interest rate of 5% will yield a future value of $211,820. 94. FV = 150,537. 19 (1+ . 05)7 = 150,537. 19 (1. 05) 7 = 150,537. 19 (1. 40710042265625) = $211,820. 94 b) Solve for FV $237,891. 22 invested for eight years at an interest rate of 3% will yield a future value of $301. 353. 48. FV = 237,891. 22 (1 + . 03) 8 = 237,891. 22 (1. 03) 8 = 237,891. 22 (1. 266770081387616) = $301,353. 48 c) Solve for FV $320,891. 12 invested for 10 years at an interest rate of 11% will yield a future value of $911,144. 98. FV = 320,891. 12 (1 + . 11) 10 = 320,891. 12(1. 11) 10 = 320,891. 12 (2. 839420986069016) = $911,144.98 d) Solve for FV $520,520. 22 invested for 13 years at an interest rate of 13% will yield a future value of $2,549,513. 82. FV = 520,520. 22 (1 + . 13) 13 = 520,520. 22(1. 13) 13 = 520,520. 22(4. 898011103216606) = $2,549,513. 82 The present value formula is based on the same fundamental formula, but it’s â€Å"solved† for the PV term and assumes you will know the FV amount. The present value formula can Present and Future Price of Money 4 answer the question, ‘how much money would I have to invest now in order to have X dollars at a specific future date? ’. That formula is PV = FV/(1 + R) n where all the terms mean the same thing, except that R in this formula is typically referred to as the â€Å"discounted rate†, because its purpose is to lower a future amount of money to show what it is worth to you now (McCracken, 2014). The following are examples of the calculation of present value: a) If you receive a dividend of $562,126. 17 in 7 years at an interest rate of 5%. You initial investment would have been $399,492. 57. PV = 562,126. 17/(1 + . 05) 7 = 562,126. 17 / (1. 05) 7 = 562,126. 17/1. 40710042265625 = $299,492. 57 b) If you receive a dividend of $225,003. 21 in 6 years at an interest rate of 6%. Your initial investment would have been $158,618. 38. PV = 225,003. 21/(1 + . 06) 6 = 225,003. 21/(1. 06) 6 = 225,003. 21/1. 418519112256 = $158,618. 38 c) If you receive a dividend of $321,567. 35 in 5 years at an interest rate of 18%. Your initial investment would have been $140,560. 05. PV = 321,567. 35/(1 + . 18) 5 = $140,560. 05/(1. 18) 5 = 321,567. 35/2. 2877577568 = $140,560. 05 d) If your receive a dividend of $63,000. 05 in 12 years at an interest rate of 5%. Your initial investment would have been $35,080. 75. PV = 63,000. 05/(1 + . 05) 12 = 63,000. 05/ (1. 05) 12 = 63,000. 05/1. 795856326022129 = $35,080. 79 Annuity Present and Future Price of Money 5. An annuity is a series of identical payments occurring at equal time intervals. When the payments appear at the end of each time period, the annuity is said to be an ordinary annuity or an annuity in arrears. Present value calculations allow us to determine the amount of the recurring payments in an ordinary annuity if we know the other components: present value, interest rate, and the length of the annuity. Present value calculations involve the compounding of interest. This means that any interest earned is invested and will earn interest at the same rate as the principal. So, you earn interest on your interest. The compounding of interest can be very significant when the interest rate and the number of years are sizable. The present value of an annuity, represented by a series of equal payments, receipts or rents involve five components: (1) Present Value (2) Amount of each identical cash payments (3) Time between the identical cash payments (4) Number of periods that the payments will occur, length of the annuity and, (5) Interest rate or target rate used for discounting the series of payments. If you have any 4 of the 5 components, you have the information you need to calculate the unknown component. Calculations of Annuity. Suppose you are to receive a stream of annual payments of $325,891. 12 every year for 12 years starting at the end of this year. The interest rate is 6%. What is the present value of these 12 payments. PVA = PMT [( 1- (1 /(1 + r) n )) /r ] = 325,891. 22[(1- (1/(1 + . 06) 12))/. 06] = 325,891. 22[(1- (1/(1 . 06) 12))/. 06] Present and Future Price of Money 6 = 325,891. 22[(1 – (1/20121964718355))/. 06] = 325,891. 22[(1-. 496969363577001)/. 06] = 325,891. 22[. 503030636422999/. 06] = 325,891. 22 x 8. 383843940383317 = $2,732,221. 13 is the present value of the 12 payments. Suppose you are to receive a payment of $437,891. 24 at the end of each year for five years. You are depositing these payments in a bank account that pays 15% interest. Given these five payments and this interest rate, how much will be in your bank account in five years? FVA = PMT [((1 + r) n – 1) /r] = 437,891. 24 [((1 + . 15) 5 – 1)/. 15] = 437,891. 24 [((1. 15) 5 – 1)/. 15] = 437,891. 24 [(2. 0113571875 -1) /. 15] = 437,891. 24 [1. 0113571875/. 15] = 437,897. 24 x 6. 74238125 = $2,952,429. 69 will be in your bank account at the end of 5 years. Conclusion Present Value and Future calculations seem to be a simple way to compare money at different periods of time. Utilizing the future value calculation a person is able to determine the estimated future value of investments based on periodic, constant payments and constant interest rate. It ca also be used to calculate the future of loans payments. Time Value Money is a basic tool in finance that is used every day. Utilizing this concept can help individuals and companies weight all the options so the best decision can be made to Present and Future Price of Money 7 prosper in the future. Understanding and having the knowledge about saving and investing is very important to our generation, especially with the very bleak look of social security. References Biger, N. (2008). Explanation of present values and net present values. Harvey, C. R. (2012). Time Value of Money. Retrieved January 16, 2013, from The Free Dictionary: http://financial-dictionary. thefreedictionary. com/Time+value+of+money McCracken, M. , (n. d. ) The time value of money. Retrieved January 2014 from http://www. teachmefinance. com/timevalueofmoney. html Present and Future Price of Money 8 Time Value of Money Overview. (n. d. ) Retrieved January 17, 2013, from University of West Florida: http://uwf. edu/rconstand/fin4424web/T2-TimeValue/T2-TimeValuePO1. htm Present and Future Price of Money.

Vaulting Ambition in Shakespeares Macbeth Essay -- Macbeth essays

Vaulting Ambition in Macbeth      Ã‚   Can one expect to find in Shakespeare's tragic play Macbeth a heavy dose of ambition? Yes, indeed. Such a heavy dose that it is lethal - as we shall see in this paper.    Clark and Wright in their Introduction to The Complete Works of William Shakespeare interpret the main theme of the play as intertwining with evil and ambition:    While in Hamlet and others of Shakespeare's plays we feel that Shakespeare refined upon and brooded over his thoughts, Macbeth seems as if struck out at a heat and imagined from first to last with rapidity and power, and a subtlety of workmanship which has become instructive. The theme of the drama is the gradual ruin through yielding to evil within and evil without, of a man, who, though from the first tainted by base and ambitious thoughts, yet possessed elements in his nature of possible honor and loyalty. (792)    In "Macbeth as the Imitation of an Action" Francis Fergusson states the place of Macbeth's ambition in the action of the play:    It is the phrase "to outrun the pauser, reason [2.3]," which seems to me to describe the action, or motive, of the play as a whole. Macbeth, of course, literally means that his love for Duncan was so strong and so swift that it got ahead of his reason, which would have counseled a pause. But in the same way we have seen his greed and ambition outrun his reason when he committed the murder; and in the same way all of the characters, in the irrational darkness of Scotland's evil hour, are compelled in their action to strive beyond what they can see by reason alone. Even Malcolm and Macduff, as we shall see, are compelled to go beyond reason in the action which destroys Macbeth and ends the play. ... ...iion of Critical Essays. Alfred Harbage, ed. Englewwod Cliffs, NJ: Prentice-Hall, Inc., 1964.    Johnson, Samuel. The Plays of Shakespeare. N.p.: n.p.. 1765. Rpt in Shakespearean Tragedy. Bratchell, D. F. New York, NY: Routledge, 1990.    Kemble, Fanny. "Lady Macbeth." Macmillan's Magazine, 17 (February 1868), p. 354-61. Rpt. in Women Reading Shakespeare 1660-1900. Ann Thompson and Sasha Roberts, eds. Manchester, UK: Manchester University Press, 1997.    Shakespeare, William. The Tragedy of Macbeth. http://chemicool.com/Shakespeare/macbeth/full.html, no lin.    Siddons, Sarah. "Memoranda: Remarks on the Character of Lady Macbeth." The Life of Mrs. Siddons. Thomas Campbell. London: Effingham Wilson, 1834. Rpt. in Women Reading Shakespeare 1660-1900. Ann Thompson and Sasha Roberts, eds. Manchester, UK: Manchester University Press, 1997.    Vaulting Ambition in Shakespeare's Macbeth Essay -- Macbeth essays Vaulting Ambition in Macbeth      Ã‚   Can one expect to find in Shakespeare's tragic play Macbeth a heavy dose of ambition? Yes, indeed. Such a heavy dose that it is lethal - as we shall see in this paper.    Clark and Wright in their Introduction to The Complete Works of William Shakespeare interpret the main theme of the play as intertwining with evil and ambition:    While in Hamlet and others of Shakespeare's plays we feel that Shakespeare refined upon and brooded over his thoughts, Macbeth seems as if struck out at a heat and imagined from first to last with rapidity and power, and a subtlety of workmanship which has become instructive. The theme of the drama is the gradual ruin through yielding to evil within and evil without, of a man, who, though from the first tainted by base and ambitious thoughts, yet possessed elements in his nature of possible honor and loyalty. (792)    In "Macbeth as the Imitation of an Action" Francis Fergusson states the place of Macbeth's ambition in the action of the play:    It is the phrase "to outrun the pauser, reason [2.3]," which seems to me to describe the action, or motive, of the play as a whole. Macbeth, of course, literally means that his love for Duncan was so strong and so swift that it got ahead of his reason, which would have counseled a pause. But in the same way we have seen his greed and ambition outrun his reason when he committed the murder; and in the same way all of the characters, in the irrational darkness of Scotland's evil hour, are compelled in their action to strive beyond what they can see by reason alone. Even Malcolm and Macduff, as we shall see, are compelled to go beyond reason in the action which destroys Macbeth and ends the play. ... ...iion of Critical Essays. Alfred Harbage, ed. Englewwod Cliffs, NJ: Prentice-Hall, Inc., 1964.    Johnson, Samuel. The Plays of Shakespeare. N.p.: n.p.. 1765. Rpt in Shakespearean Tragedy. Bratchell, D. F. New York, NY: Routledge, 1990.    Kemble, Fanny. "Lady Macbeth." Macmillan's Magazine, 17 (February 1868), p. 354-61. Rpt. in Women Reading Shakespeare 1660-1900. Ann Thompson and Sasha Roberts, eds. Manchester, UK: Manchester University Press, 1997.    Shakespeare, William. The Tragedy of Macbeth. http://chemicool.com/Shakespeare/macbeth/full.html, no lin.    Siddons, Sarah. "Memoranda: Remarks on the Character of Lady Macbeth." The Life of Mrs. Siddons. Thomas Campbell. London: Effingham Wilson, 1834. Rpt. in Women Reading Shakespeare 1660-1900. Ann Thompson and Sasha Roberts, eds. Manchester, UK: Manchester University Press, 1997.   

Vasilauskas Callie Unit

At first England is referred to as, ‘This other Eden, deem-paradise/ This fortress built by nature for herself' (2. 1, p. 677-720, 41-44). Gaunt compared the garden of England to the Garden of Eden, Gods Garden! Soon that image is destroyed with descriptions of England defeating itself, much like pests and rodents destroying a garden from the inside out. Referencing both the Garden Of Eden and the internal destruction of the garden, it is obvious that this speech is more than just rambling about flowers and bugs.Describing England as much more than just place to live while also commenting how it is those that live in England that will destroy it is much more religious than some might think. While in the Duke of Works garden, it becomes evident who the â€Å"pests† of the garden really are. King Richard and his merry men are the parasites that are destroying the Garden of England. â€Å"When our sea walled garden, the whole land is full of weeds/ Her fairest flowers chok ed up, her fruit trees all unpinned/ Her hedges ruined, her knots disordered and her wholesome herbs swarming with caterpillars (3. , p. 1836-1919, 40-46). In the same scene on lines 51-65, it is made clear that it is the king that has not trimmed and dressed his land. While he does not directly come out and say the word, â€Å"garden†, Blinkered speaks of the, â€Å"Caterpillars of the commonwealth/ Which have sworn to weed out and pluck away† (2. 3, p. 1277-1 357, 166-167). We know, of course, that Blinkered is speaking of the Kings advisors, Bushy, Bogota, and Green. Talking about the pests of the garden that are destroying it is a very important part of the play.Knowing who is letting weeds flourish in the Arden makes it easier to get the plants in a row. In regards to the gardens in the play, feel that Shakespeare was writing on more of a religious front than anything. Using the Garden of Eden as a way to describe England was my first tip off. The beauty, bliss, a nd purity that we all know of the Garden of Eden made it easy to picture England as a beautiful garden. Once the ugliness and betrayal made an appearance, Adam and Eve and their betrayal to God came to mind. While they could not resist temptation, King Richard could not resist either.He became greedy and money hungry with the desire of land and power. This led to the internal failure of the garden since the main â€Å"gardener† was failing at his duties. Religion was a major undertone in The Tragedy of King Richard II, and when I realized this I finally noticed how wonderful the writing of Shakespeare truly is. Once you get past the different style of writing, it is easy to admire the beauty within the play. It is clear why John of Jaunts speech about the garden is one of the most famous speeches of the play.

Technical Communication Methods and Practices Essay

Technical Communication Methods and Practices Jerome Armstead CJA/363 Interpersonal Communication Don Gemeinhardt There are many different accidents that may occur that law enforcement may encounter on a day to day bases. Officers must know how to react to these calls in order to effective communicate with others. Effective communication will allow an officer the know how to specifically get the help that he needs in order to complete the task with the correct tools. The police officer needs to be able to communicate with the accident victims, another officer, the department, or even the dispatcher. There are different types of accidents that may occur such as fire accidents, auto accidents, homicides, robberies and†¦show more content†¦Communication is vital between the police and the fireman because there may be others is involved that could be injured or could become injured (Criminal Procedure, 2008). The police have many protocols for many different situations. Many police departments have procedures that are followed for an auto accident. First the responding police officer will check the area for anyone that is injured and communicate the information by radio to another officer. Normally the dispatcher, who is communicating with additional officers, relays the information that he receives from the responding officer. The officer must communicate with the drivers at take statements, so that the officer will record each driver’s version of how the accident occurred into a police report. Sometimes an additional officer that is present may be used to help with the questioning in order to determine if any drugs or alcohol were used. The report may have diagrams of the accident, which may help determine who was at fault. The officer then may have photographs, and roadway conditions. After this the final police report will be compiled with all of the statements and addit ional information that was gathered. The report will provide information on who was at fault. â€Å"During any investigation the police must have probable cause to make an arrest. However, the police at times must obtain an arrest warrant in order to acquire more evidence to support their suspicions. Communication mustShow MoreRelatedAbstract: Tc Involves The Conveyance Of Technical Information1072 Words   |  5 Pagesinvolves the conveyance of technical information to an audience. The goal of the study is to find the role of technical communication in workplace contexts using the views of people in real workplaces. The study is guided by the following questions: 1) What are the roles of technical communication in the firm? 2) What is the importance of technical communicators in driving the firm forward? There have been many studies that have explored the subject of technical communication. Studies show how historyRead MoreSoftware Development Methodology Best Practices1495 Wo rds   |  6 Pages IST 659 BEST PRACTICE 1 SOFTWARE DEVELOPMENT METHODOLOGY BEST PRACTICES POOJA RAMALINGAM INTRODUCTION The initial software development methodologies were more than methodologies, free for everyone, as organizations endeavored to profit from the latest computer related technologies. As the industry gained more insight about designing the software, fixed techniques for administering and predicting the market price of the software development projects came into practice. Agile softwareRead MoreCommunicating With Your Athletes : An Important Aspect When Becoming A Successful Coach1311 Words   |  6 Pagescoach. Successful coaches are masterful communicators, and unsuccessful coaches often fail not because of poor communication but because of poor communication skills. Effective communication is just as essential to successful coaching just as it is to successful careers. There are three basic dimensions of communication: 1- Sending and receiving messages, 2- Verbal and nonverbal communication, and 3- Content and emotion. Typically, coaches are more skilled in sending messages than receiving them, inRead MoreRoles and Responsibilities of a Sports Coach Essay1484 Words   |  6 Pagesinclude communication skills, organisation skills and sport-specific skills. Coaches need to have a a range of good communication skills as they should communicate in different ways to suit people’s needs. It is important that coaches have these skills so there able to motivate performers and provide them with information in a way that students understand it so they can train in order to improve their performance and also listen and understand what performers have to say as communication worksRead MoreThe Development And Design Of A Database1429 Words   |  6 Pagessome instances, database development using agile methods engage in rushed deployments, neglecting the importance of testing. There are daily deployments of databases without getting the key aspects right which can create a lot of frustration. The agile process still has several benefits, though, which include the elimination of unnecessary features, increased functionality, reduction in the time it takes to design the database, and improved communication between different areas of an organ ization. StillRead MoreInternal and External Pursuasive Communication Essay1716 Words   |  7 Pagesï » ¿ Internal and External Persuasive Communication COM 537 August 19, 2013 Abstract Organizations both large and small, all share a common feature. This feature is internal and external stakeholders. An organization can have a wide variety of internal and external stakeholders. It is vital to make certain that designated managers within the organization keeps both internal and external stakeholders informed of accolades, potential problems, problems, as well as anyRead MoreIt Is Important To The Dentists To Understand The Patient’S1195 Words   |  5 Pagesimportant because patient satisfaction is associated with health status, health outcomes, anxiety, patient adherence and service utilisation 2. The advantages of good dentist-patient relationship on clinical practice includes: 2 The impact of a good dentist-patient relationship on clinical practice: †¢ More collaborative and trustful partnership. †¢ High quality oral health care. †¢ Increased patient adherence and patient satisfaction. †¢ Reduced dental fear and anxiety. †¢ Better treatment outcome and long-termRead MoreThe Challenges, Solutions, Models, Tools And Tools1080 Words   |  5 Pagesand an example in Distributed Software Development (DSD). The objective is to collect and systematize reported knowledge in terms of what are the difficulties in managing DSD projects, what are the best practices to overcome these difficulties, and how existing models and tools support these practices. The DSD is a phenomenon with considerable interest from companies all over the world where the stakeholders from different national and organizational cultures are involved in developing software. AsRead MoreModule 5 : Communication Plan1248 Words   |  5 PagesModule 5: Communication Plan I. Introduction After an internal audit, it has been determined that a detailed communication plan could resolve many of our communications efforts with respect to the Recreation and Wellness Intranet Project. This communication plan will be used to define specific communication requirements for this project. This will outline how information will be documented and distributed to other team members and stake holders. This plan will also define the level of detailRead More The Study of Rhetoric Essay1038 Words   |  5 Pagessubject matter. These abilities require higher-level thinking, not just skills; analysis and evaluation, not just observation . . . . The study emphasizes strategies and practice rather than a body of facts and contemplation; thus the study of rhetoric aims for social application. Students are studying rhetoric in a technical communication course even though they may never hear of Aristotle nor study history and theory of rhetoric. Identifying a problem, gathering, interpretin g, and arranging information