![Quote](custom/vgo/images/misc/quote_icon.png)
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](custom/vgo/images/misc/quote_icon.png)
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.