Business Finance
Chapter 5 Opportunity Costs and the Time Value of Money
5.4 The Present Value of a Single Amount
The Present Value of a Single Amount - Business Finance - ثاني ثانوي
PART 1
Chapter 1 An Introduction to Basic Finance
Chapter 2 The Role of Financial Markets and Financial Intermediaries
Chapter 3 Analysis of Financial Statements
PART 2
Chapter 4 An Introduction to Financial Markets
Chapter 5 Opportunity Costs and the Time Value of Money
Chapter 6 Risk and Its Measurements
Chapter 7 Stock and Bonds
5.4 The Present Value of a Single Amountt
Present value
What is the present value of SAR 100 to be received three years from now based on a 10% rate?
Khalid’s goal is to have SAR 1,000 five years from now. If his investment earns 5%, what amount would he need to invest today?
Ali wants to have SAR 2,000 six years from now. If his investment account pays 4% per year, how much does he need to invest today?
Nora’s goal is to have SAR 2,000 in four years time. She can either invest in an account which pays 4% or one that pays 5%. What is the difference between the present value amounts of the two
A present value calculation is referred to as compounding.
If you want to have SAR 5,000 in three years’ time and your investment account earns 4% each year, how much do you have to deposit into your account now?
