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

/in /by

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.

Copyright 2019 by University of Phoenix. All rights reserved.