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Time value of money concepts and math form the cornerstone

August 10, 2022

Time value of money concepts and math form the cornerstone of finance. This discussion is an opportunity for you to practice using these formulas and to progress in your understanding of this important topic. You will use these concepts later in this course, in other finance courses, and throughout a career in finance. Like many concepts, each time you work with time value of money problems you may develop a slightly different, deeper, and more thorough understanding of the theory. Some of you may be quite comfortable using these formulas, while others may need to spend extra time focusing on the mathematics. However, all of you can progress in your abilities through this discussion activity.

Compute the present value of annual cash payments of $600 per year, for 3 years, using a discount rate of 8%.

Use attached pic to complete equation.

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