Time Value of Money Essay - 708 Words

Time Value of Money Project Show all your work! Name _________________ 1. If Mrs. Beach wanted to invest a lump sum of money today to have $100,000 when she retired at 65 (she is 40 years old today) how much of a deposit would she have to make if the interest rate on the C.D. was 5%? a. What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%. b. What would Mrs. Beach have to deposit if she were to use common stock and earned an average rate of return of 11%. c. What type of a problem is this? ___________ 2. If you had a payment that was due you in 5 years for $50,000 and you could earn a 5% rate of return, how much†¦show more content†¦a. What would be the principal and interest payment on the first payment? b. What would be the principal and interest payment on the twelfth payment? c. What type of a problem is this? ___________ 6. You want to purchase a truck for $25,000 and you have $3,450 to put down. How much will your payments be if you financed the truck for 60 months at 6%? a. How much would the payment be if rate of interest is 5% and you only financed the truck for 48 months? b. Assuming that you would only finance the truck for 4 years, how much would you need to put down to get your payment to $450.00? c. What type of a problem is this? ___________ 7. You have $350.00 per month to spend on a car payment. If your credit union charged 7.5% interest on a used car, how much car can you purchase if you will only finance for 4 years? __________ 8. If you want to purchase a home. You have $15,000 to put down. All you can afford is $1,500.00 per month and you do not want to finance for more than 15 years @ 6% interest, (your taxes will be $85.00 per month and insurance $200.00 a month), what is the amount you can pay for your home? (Show all your work) 9. You want to purchase a business with the following cash flows. How much would you pay for this business today assuming you needed a 14% return to make this deal? a. Year 2011 $150,000 b. Year 2012 $175,000 c.Show MoreRelatedTime Value of Money1028 Words   |  5 Pagestoward understanding the relationship between the value of dollars today and that of dollars in the future is by looking at how funds invested will grow over time. This understanding will allow one to answer such questions as; how much should be invested today to produce a specified future sum of money? Time Value of Money In most cases, borrowing money is not free, unless it is a fiver for lunch from a friend. Interest is the cost of borrowing money. An interest rate is the cost stated as a percentRead MoreTime Value of Money1033 Words   |  5 PagesTime Value of Money (TVM), developed by Leonardo Fibonacci in 1202, is an important concept in financial management. It can be used to compare investment alternatives and to solve problems involving loans, mortgages, leases, savings, and annuities. TVM is based on the concept that a dollar today is worth more than a dollar in the future. That is mainly because money held today can be invested and earn interest. A key concept of TVM is that a single sum of money or a series of equal,Read MoreTime Value of Money967 Words   |  4 PagesTime Value of Money The time value of money relates to many activities and decision in the financial world. â€Å"Understanding the effective rate on a business loan, the mortgage payment in a real estate transaction, or the true return on an investment depends on understanding the time value of money† (Block, Hirt, 2005). The concept of time value of money helps determine how financial assets are valued and how investors establish the rates of return they demand. Many different types of companiesRead MoreTime Value of Money2180 Words   |  9 PagesFinance Ââ€" Time Value of Money We earn money to spend it and we save money to spend it in the future. However, for most people spending money in the present time is more desirable since the future is unknown. We can gratify the desire to spend money today rather than in the future by knowing the basic law in finance Ââ€" time value of money. This means that a dollar today is worth more than a dollar at some time in the future. Unfortunately, people very often want to buy things at the present time whichRead MoreTime Value of Money3904 Words   |  16 PagesTime Value of Money Problems 1. What will a deposit of $4,500 at 10% compounded semiannually be worth if left in the bank for six years? a. $8,020.22 b. $7,959.55 c. $8,081.55 d. $8,181.55 2. What will a deposit of $4,500 at 7% annual interest be worth if left in the bank for nine years? a. $8,273.25 b. $8,385.78 c. $8,279.23 d. $7,723.25 3. What will a deposit of $4,500 at 12% compounded monthly be worth at the end of 10 years? a. $14,351.80 b. $14,851.80 c. $13,997.40 d. $14Read MoreTime Value of Money5284 Words   |  22 Pages12/9/2012 Chapter 9 The Time Value of Money 1 Chapter 9- Learning Objectives ïÆ' ¼ Identify various types of cash flow patterns (streams) that are observed in business. ïÆ' ¼ Compute (a) the future values and (b) the present values of different cash flow streams, and explain the results. ïÆ' ¼ Compute (a) the return (interest rate) on an investment (loan) and (b) how long it takes to reach a financial goal. ïÆ' ¼ Explain the difference between the Annual Percentage Rate (APR) and the Effective Annual RateRead MoreTime Value of Money2092 Words   |  9 PagesTime Value of Money The time value of money (TVM) or, discounted present value, is one of the basic concepts of finance and was developed by Leonardo Fibonacci in 1202. The time value of money (TVM) is based on the premise that one will prefer to receive a certain amount of money today than the same amount in the future, all else equal. As a result, when one deposits money in a bank account, one demands (and earns) interest. Money received today is more valuable than money received in the futureRead MoreTime Value of Money2124 Words   |  9 PagesTime Value of Money: Simple Interest versus Compound Interest Outline I. Applications of Time Value of Money 1.1 Example One 1.2 Example Two 2. Interest 2.1 What is Interest? 2.2 Three Variables of Interest 1. Principal 2. Interest Rate 3. Time 2.3 Why is Interest Charged? 3. Simple Interest 3.1 What is Simple Interest? 3.2 Simple Interest Formula 4. Compound Interest 4.1 What is Compound Interest? 4.2 Compound Interest Formula Read MoreTime Value of Money712 Words   |  3 Pageswill pay the bank over the life of the loan? $123,945.04 4. What is the effective rate of interest on a CD that has a nominal rate of 7.25 percent with interest compounded monthly? EAR = (1+.0725/12)^12 – 1 = 7.5% 5. What is the future value of $4,950 placed in a saving account for six years if the account pays 3%, compounded quarterly? PV = 4,950 N = 6 x 4 = 24 I =3/4 = .75% Pmt = - FV = $5,922.24 6. Your firm, Vandelay Industries, has just leased a $32,000 BMW for youRead MoreTime Value of Money and Present Value1154 Words   |  5 Pagescollege 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $23,000 per year per child, payable at the beginning of each school year. The annual interest rate is 5.5 percent. How much money must you deposit in account each year to fund your children’s education? Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college Solution: Cost of 1 year at

Impressions Of Renaissance Art Essay Example For Students

Impressions Of Renaissance Art Essay Art has gone through many phases throughout history. As times have changed, so have the manner and style of artists and their art. During the Middle Ages, Europe suffered a widespread horrific disease called the Black Death which killed one-fourth to one-third of the population. After the Middle Ages came a period of change called the Renaissance, which means the rebirth, came to life in Florence and eventually spread throughout the rest of Europe. The Renaissance was reforming many things such as art in general, literature, science, drama, and many more areas of expression. During this period, European citizens turned to artwork as relief from the horrible past experiences such as the Black Death. Symbolic representation in paintings became a thing of the past, as many artists moved to realistic representation. This change in art was caused by a move of scientific worldview of reason, and scientific exploration of the human body. Along with that, many other artistic concepts were introduced such as: chiaroscuro, proportions, pyramid configuration, oil paints, and linear perspective. The Lamentation by Lucas Cranach the Elder, and The Crucifixion and Last Judgment by JanVan Eyck, both embody many of the new Renaissance art styles which reflect the changing sentiments of European culture. Born in Maaseick, Limbourg, Jan Van Eyck was known to be the most celebrated painter in fifteenth-century Europe. Although he was credited with inventing painting with oils, which is incorrect, he was the first to use oil paint to his advantage, making illusions of light, vivid oil colors, and microscopic detail. He was known to have perfected this technique. The Crucifixion and Last Judgment was painted in the 1430s, and when I saw this painting it caught my eye because of the way he presents it. The painting is split in half; on the left there is The Crucifixion and on the right there is The Last Judgment. The concentration of these paintings all seem to be centered on Christ by using pyramidal composition. Pyramidal composition was the idea that objects are placed on the foreground of the scene and other objects are placed further and further behind, which creates an illusion of depth while drawing the focal point to the center of the paper. After studying the painting it is remarkable how much detail and information he put on the small canvas he had. The Crucifixion was painted to show Jesus and the story of his death. At first glance, it looked to me as if it was a simple painting of Christ being crucified and many people around him simply watching it. As I stood there and tried to examine the finer details, it took me a while because I never actually examined an artwork to this extent. I soon began to see the intricate details Van Eyck made, and how he incorporated some of the new styles that were founded in the Renaissance in his painting. If you look closely, you can see the very detailed castles and structures in the background. I then noticed the cloud formation and the mountains in the horizon. I was amazed at this, because when closely examined it looks completely real. This was made possible by the introduction of linear perspective, one of the most influential advancements made in art. Linear perspective entails making lines converge at a vanishing point, while having objects in the painting appear to retreat in the distance. This creates an illusion of depth, and makes it so there is an illusion of three-dimensional space on a two-dimensional surface. One of the last things I saw that I found most impressive was the amount of detail Van Eyck put into the people and animals at the bottom half of The Crucifixion. As said before, at first glance it only appeared as if many people were gathering around to view Christs death, and when I first looked I could not make out the expression on their faces. As I looked closer, the expression on each face was remarkable. Van Eyck puts a completely different facial expression on each person. Seeing this, I realized that there were not only a group of people who watched Christs death with satisfaction, but there were in fact a number of people mourning his death. It seems that the mourners were at the bottom of the painting, which from the perspective of the eye witness, would be closer to him/her. The clear and present agony was evident as the subjects being portrayed responded to the situation that was being presented. Marriage In The Renaissance Era Essay ThesisIn the painting, Saint John is holding Jesus head up, Nicodemus holds Mary Magdalenes ointment jar while she bends down to kiss Jesus hand wound, Joseph of Arimathca holds the crown of thorns, while the Virgin Mary glances at Jesus corpse (Fazio, 38). Whats so incredible about this painting is the realness that is portrayed. To achieve this, Cranach used five techniques, three of which were mentioned before; chiaroscuro, pyramidal composition, and linear perspective. Chiaroscuro is used in this painting to create shadows and show the source of light. The light seems to be coming from behind the figures, particularly in the middle to right corner of the painting. This is used to create shadows on the characters, and in turn makes certain characteristics such as clothing seem real. When a viewer looks at this painting, they will see and think that Jesus is the main focus of this painting, however there are other people in it. This was done by the way Cranach utilizes pyramidal composition. Jesus is in the foreground, and objects are placed strategically further into the painting to create depth, while still maintaining focus on Jesus. This is similar to Linear Perspective, where Cranach places Jesus in front, and others further back of the scene. His vanishing point is more towards the center of the painting rather then a certain side. The difference between linear perspective and pyramidal composition is that linear perspective doesnt necessarily have to draw a focal point to the center of the painting. Contrapposto pose, which is a technique used that dates back to the ancient Greeks, is a shift of weight to one side, and is used to make the painting appear to be a real situation. By using contrapposto pose, it makes the characters look as if they are responding to the situation that is presented, making it look real. Like Van Eyck, Cranach focuses in on the detail of facial and body expressions. Combined with contrapposto pose, it makes it so a viewer of the painting can feel the anguish of the subjects painted, who are responding to Christs death. Typical of Cranachs mature manner are the paintings high emotional drama, intense palette, and mannered elegance (Fazio, 38). During this time of Renaissance art, the Protestant Reformation was also occurring. The church had been losing power over members of society, since the late Middle Ages when the whole culture and ethos revolved around church. Because of this, artists were able to express themselves more and paint religious scenes more freely and with less censorship. Cranach took advantage of this, and used real life proportions on every character in his painting. Until the Renaissance, many artists would embellish Gods, heros, kings, and many select individuals to look superhuman and take precedence over all other people. Cranach does not do so however, and shows Jesus as a mere mortal. He is portrayed as weak, fragile and almost helpless. He was able to depict Jesus freely and as he wanted to, which would never have been allowed before the Renaissance. The increasing separation of the Church from the state allowed for a more advanced expression of art. The paintings The Crucifixion and Last Judgment by Jan Van Eyck, and The Lamentation by Lucas Cranach the Elder, both are perfect examples of Renaissance art. The Renaissance brought upon many new styles to the art realm, which usually portrayed the change Europeans were having in their cultures. Both paintings are examples of how there was a shift from symbolism to realism from pre-Renaissance to the Renaissance on. They also represent many Europeans interest in observation and the exploration of reality. These paintings affected my appreciation of not only Renaissance art, but art as a whole, because it helped me understand how art can be used as communication, and how many paintings were reflections of the current time they were being painted in.