Understanding The Time Value Of Money

Before beginning work on this assignment, please review the expanded grading rubric for specific instructions relating to content and formatting.

Money has different values based on time. Money in your pocket has a current value, but money owed to you has a varying value based on how sure it is that you will receive it and when. It is possible to estimate its value. In this assignment, you will analyze the value of money on the basis of this Weeks learning.

Review to attain more information on how the value of money is based on time.

Find the following values for a lump sum assuming annual compounding:

• The future value of $500 invested at 8 percent for 1 year
• The future value of $500 invested at 8 percent for 5 years
• The present value of $500 to be received in 1 year when the opportunity cost rate is 8 percent
• The present value of $500 to be received in 5 years when the opportunity cost rate is 8 percent
• Analyze present and future values and their implications for the balance sheet and the budget of an organization.

Submission Details:

• To support your work, use your course and textbook readings and also use the South University Online Library. As in all assignments, cite your sources in your  work and  provide references for the citations in APA format.
• Your assignment should be addressed in a 2- to 3-page document.