Tre value of “money x > The +me ~alue of neremoy refer to the - Cboenvatton thaf tel Bolter tp reeoawe error Bu thon laten. ‘ F: A dollar dodey io ewordh mone han a.dellon rete future. [lime Ine, A-ime line depicle the aah with a ghren tavatament. Tig a hontzerrlal [ne on whichs time erp appeanr ad the lef mor ee ord tctuna pamace ane moked cman fee mom eff 4, wight 5) Vourra amo cated £2 Gon ae ee Geet 2 Diotourds > Time Ite ahwing the -fidurc. salue Compounding +o find future. luce ond dto- Courting te +fnd prevent value . —~ e eaa |_— 4 eS | Baaia putea of) oooh Flow, D Siggle ornoud - A poe fi) Armutty Prune ‘4 a 1) amixed trecam Mooi Alrgle crpextt roe Id on A lump- eum amount -eithen aunnertly hi expecled at aome future dele a bss Ha value. oa fecha) wide a tye, oo He Inalwalas 1.080 ted and $6 00 te be tetera ond of 40 yean. ar Future. Value =fa the orrpumt of placed on depot today ofa ropoottfa reece amferent re that wll ghee. Jicene pentcd FV = PY (449) FV ~ PB CHEDI™ _, fr Compounching “Titenast fo Compoundig Tadeneel sitierlera| thak t@ carmed On a gien depett and hag heasme. ©. parcfop prinefipal atthe ond of & petted penfod .Rreverr| Naluic.s The duster’ Baler of the, Hutune ~olicoment — the omeunt of npnaney Abed wold hove +> whe \mvaeted tochy ata ghon inleraat rele. oven a ape.ctPad ported BRE re felane cree corm | pce lve Pv = (ya a pv = eye 4 fermion fornity> A atreom of equal peniodia. aaah fw coma ppectfied time pentied - Thene. cash flows can be isflews of yeckunne earned on tevostmenty on otc flows of fee irepled Jo carn felune penis retureye , [ype of © Amat, Gh) ane -twe -typeo of Arouffea . D Ondtrany Prmaity (W) Annuity Due . 9Ordinary Ah Arnusy > Ao ema fot whtah the cash flow 0%, oat the exd of aah pended. FS OR y [Gag are fp Or-2] a i aol * vg. Lrmetly Dec Ee en whieh The Wah Fao cate.“Renpodidly b An omautty with o infintte. continual camoal aaeh Flow. oe we 0 life, providir 4 Mixeel_cancnrng A ginam of > umequal pentodia. coh flows that refleat yo porteulan patter, EndefYean, Coo Plow | FVIFa ers | Fedune. value. 4 44500 |Gog)t = 19 45640 en 14000 (28) 3 =426| 47640 2 12902 |(.08)?—= 247) 15093 4 140> (108) = p08 17280 a wee | (usd)! = i200 as |Endofyeon Coah fiw PV IFns - emp | Fronent Valve. e “yo PG 1? there ir xual one pen | Loon and on ‘orlerwerl onl loc ane the. foot 407% fasleruat only loner of $ 1008 > The bonnewer woul al py inrlewot (200418) = (od atthe erd of fie ond pocond yeaa atthe -brdof. -thind yeano, +he bonnawer woul: pe reetunm J 4 00 clog wut Senin trrlowst- fr thie year.eo OBIT —-aa0F J woz oer or ote SBT tag E , 200} Gabo Q00E = @G Q00G_ | » 7 “rg koh, —_ ra THe ig hal pref, Rete, J 41 empeyoe Loy Zp ately yh RPO EH om opens htonuge oe woo), 200% P }UPH GE yak 2W- UND Sundding, ‘adware u “PNoWY pox nue omd payed, Yoo jeova}.n oy fed romovLLeg ipa oh et WH) Brats Yo dam apa Yc _ppunyapit etaH0) Pergobt = + A 4 we) = eee t “a Cp = ¢ Pah VA Es \ i Laayo' DFP ype? ofeu2%9 puneduaso yb een ‘fopop Q004 3% g ypuem HY te peo mg DU! goog fF pojeann! nok eB 2wadr¢q “cadddne THA) aad dee eek P Op jeovopy yr Hap Bayo st . | pen -, 1Q0°200%./ G j | cer Earl |e gl £2 O69 &rE606 H49¢5 a re 1@-0702 ECB 6s warst by Caeg | e Gi GGsG 6-006 IB heg U9CT |Gz-horh ail Carbath T2868) ohh eset gaya. | ny : | { fs epg PRS agys mopar ple a Badong wka OM wo tryDia Hngutah betwaey, Nomfnal crrmual rate a, eRbelhe. amnual reafe ; The mommal ormncaal rate, to the. contracts beter orn ual rate of trees on toon pork by the. borrower, Tho -norntnak Orme TO dom mot cone core the Cast porrnd fag SS PPrRINCBL, tha 2 GBolno'ecrmedal Sa to Crmnual rate of inlenust actually pat at Hexen} Cornpotin apg “frequan ebay Sinae_ j RRNA Ol. ornayen. ade rearte. repravoniaticr the Arua aget of loorerrow?ng. yy aonotdar! Cormpoorrcing eter, af Gornpoundtg OCOWTR anone Frequently F will be VWighere thon APR.Apporclntly coal ef Morey The opporturtty agat of snoney ia the potenttal return ore bent that apuld be gotrad neen aerate unde of the dme ties furde. To -ffromePal deata%on amalsieg , So htghly teleyert because Bt emphaete. the valucot the beat olererathe. forge. whem a chloe in omade. Comideratfin of opporctuntly cost fo arwotal %n Various frontal eeemanfoa. auch ao Parvo re Buelncea decketme or peroonal -Runcal chest chorea . em reacagntaieg anal Cormmpardisg tho. potential rroturene of diferent optime trate and loweInereze con sake mane ecned Veelopiom about how-to allocate thetc roseurteoy §offecthaly ard smoxtmie thetic. etal ~aluo. .