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Simple interest interest paid - PowerPoint PPT Presentation

CHAPTER 4: MANAGING YOUR CASH AND SAVINGS

CHAPTER 4: MANAGING YOUR CASH AND SAVINGS. E*TRADE Banking Baby. Role of Cash Management in Personal Financial Planning. Cash management deals with the routine, day-to-day use of liquid assets .

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CHAPTER 4: MANAGING YOUR CASH AND SAVINGS

CHAPTER 4: MANAGING YOUR CASH AND SAVINGS. Role of Cash Management in Personal Financial Planning. Cash management deals with the routine, day-to-day use of liquid assets . Liquid assets consist of cash and other assets which can be readily converted to cash with little or no loss in value.

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Valuation Under Certainty

Valuation Under Certainty. Investors must be concerned with: - Time - Uncertainty First, examine the effects of time for one-period assets. Money has time value. $100 in one year is not as attractive as $100 today.

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Activity 8 - 2

Activity 8 - 2. Time Is Money, Revisited. Objectives. Distinguish between simple and compound interest Apply the compound interest formula to determine the future value of a lump-sum investment earning compound interest Determine the future value using technology

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Simple interest interest paid - PowerPoint PPT Presentation

CHAPTER 4: MANAGING YOUR CASH AND SAVINGS

CHAPTER 4: MANAGING YOUR CASH AND SAVINGS

Valuation Under Certainty

Activity 8 - 2