1. Does Inflation have anything to do with making a dollar today worth more than a dollar tomorrow?




2. List five different financial applications of the time value of money.

This is what I have so far not sure if they are right- Present Value (PV) Future Value (FV) Present Value of an Annuity (PVA) Future value of an Annuity (FVA) and ? Not sure of the fifth one.

Quote:

---

Originally Posted by helpme 83

1. Does Inflation have anything to do with making a dollar today worth more than a dollar tomorrow?

---

Yes.

Today, 2007, you can buy a loaf of bread for $3. In 2017, a loaf of break will cost you $3.50.

Therefore, $3 today, in 2007, will buy you MORE today than it will in 10 years.

Quote:

---

Originally Posted by helpme 83

2. List five different financial applications of the time value of money.

This is what I have so far not sure if they are right- Present Value (PV) Future Value (FV) Present Value of an Annuity (PVA) Future value of an Annuity (FVA) and ? not sure of the fifth one.

---

Add Perpetuity to your list.

Quote:

---

Originally Posted by helpme 83

1. Does Inflation have anything to do with making a dollar today worth more than a dollar tomorrow?




2. List five different financial applications of the time value of money.

This is what I have so far not sure if they are right- Present Value (PV) Future Value (FV) Present Value of an Annuity (PVA) Future value of an Annuity (FVA) and ? not sure of the fifth one.

---

No, inflation doesn't mean much, what you need to worry about is the maturity risk on most investments due o the overimpending rate of interest fluctuation