question archive Explain in words why a dollar has different values dependent on point in time received, and how “present valuing” or “future valuing” cash-flows corrects for these differences
Subject:FinancePrice:2.86 Bought11
Explain in words why a dollar has different values dependent on point in time received, and how “present valuing” or “future valuing” cash-flows corrects for these differences. Also, look at the mathematics of the “annuity” versus the “annuity due”, and explain why the annuity is 1+r more valuable. Finally, create an amortization table using your calculator (like in the notes) and explain why the amount of interest paid is decreasing, and the principle paid is increasing.
Purchased 11 times