HW 6 FIN - EssayAbode

09 Nov HW 6 FIN

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Describe with your own words.

1. Why does Time has value in finance?

2. Explain the calculation relationship between Future Value and Present Value for a single future cash flow.

3. Explain the following Excel functions in calculating factors of the time value of money.

a. r (I/Y)

b. nper (N)

c. pmt

d. pv

e. fv

f. type

4. Explain the difference between Ordinary Annuity and Annuity Due in cash flows.

5. Explain the Perpetuity in terms of cash flows. How is it calculated?

6. Compare Annual Percentage Rate (APR) vs. Effective Annual Rate (EAR).