Time Value of Money - 2124 Words

Time 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 5. Compound Interest Tables 1. Future Value of $1 2. Present Value of $1 3. Present Value of an Ordinary Annuity of $1 4. Present Value of an Annuity due 5. Present Value of a Deferred Annuity 6. Conclusion 7. References†¦show more content†¦Metal loans were based on weight. Before the concept of money came in existence, loans of grain and silver served as a bargaining tool to facilitate trade. Silver was used in town and grain was used in the country. Under the laws of usury, the collection of interest was forbidden. Today, interest rates are very closely watched market indicators. Interest rates have a dramatic effect on finance and economics. Interest As we discussed earlier, after investing $100 in a savings account at your local bank yielding 6% annually, you will have $106. The $6 earned is the interest on the initial deposit of $100. Interest is the â€Å"rent† paid for the use of money for some period of time, (Spiceland, Sepe, Nelson, pp. 322). Interest is also a surcharge on the repayment of borrowed money, the return derived from an investment, or the right to claim in a corporation such as that of creditor or owner. When we borrow money, interest is typically paid to the lender as a percentage of the principal or the amount owed to the lender, so, the larger the principal, the larger the dollar amount of principal. The interest rate is the percentage of the principal that is paid as a fee over a certain period of time (typically one month or year). If interests are high, the larger the amount of interest received. And the longer the funds remain in an account, the larger the dollar amount of interest. Becau se the bank is using the deposited funds, theShow 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 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 atRead MoreTime Value of Money Essay708 Words   |  3 PagesTime 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

Use Of Stimulants For The Treatment Of Attention Deficit...

The question of the validity of the use of stimulants for the treatment of attention-deficit hyperactivity disorder (ADHD) is highly connected to the question of attempting to balance the effectiveness of the drugs and the dangers inherent in their use. ADHD is a problematic mental and behavioral disorder especially among children and it is very important that we as a society find an effective method to treat it with the least amount of adverse effects to patients. It is a very good question to ask if a treatment is worth the risks and this definitely the case with the use of stimulants for treating ADHD. The use of stimulants has been rightly controversial and their negatives are very hard to ignore. Keeping this is in mind, it is still much better to prescribe stimulants for the treatment of ADHD. There is overwhelming evidence that which points to the fact that despite the prevalence of opinion against it doctors and parents should, in fact, have no problem prescribing amphetam ines to children for the treatment of ADHD. This paper will argue that despite a lot of adverse effects and negative press which the use of stimulants has gotten as the primary method for the treatment of ADHD it is, in fact, one of the best and most effective ways which we have to treat it. One of the strongest arguments against the use of stimulants and amphetamines as a method for treating ADHD is connected to the belief that we as a society are overprescribing medications for theShow MoreRelatedAttention Deficit Hyperactivity Disorder (ADHD) Essay1687 Words   |  7 PagesAttention Deficit Hyperactivity Disorder Introduction Attention-Deficit Hyperactivity Disorder (ADHD), once called hyperkinesis or minimal brain dysfunction, is one of the most common mental disorders among children. (Elia, Ambrosini, Rapoport, 1999) It affects 3 to 5 percent of all children, with approximately 60% to 80% of these children experiencing persistence of symptoms into adolescence and adulthood, causing a lifetime of frustrated dreams and emotional pain. There are two types of attentionRead MoreAttention Deficit Hyperactivity Disorder ( Adhd )1100 Words   |  5 PagesAttention deficit hyperactivity disorder (ADHD) What is ADHD? Attention deficit hyperactivity disorder (ADHD) is a psychiatric illness characterized by problems with attention as well as hyperactivity. Individuals also tend to act impulsively. The exact cause is unclear but is likely related to genetic factors as first-degree relatives are often affected. The disease frequently begins in childhood and may progress into adulthood. The condition is also often associated with other psychiatric comorbiditiesRead MoreAttention Deficit / Hyperactivity Disorder Essay1121 Words   |  5 PagesAttention-Deficit/Hyperactivity Disorder (ADHD) Ailene M. Broadbent Mohave Community College Attention-Deficit/Hyperactivity Disorder (ADHD) ADHD is one of the most common neurological disorders diagnosed and treated in children. ADHD often affects a child’s ability to focused for any amount of time and can affect their life adversely if not diagnosed and treated properly. One of the problems with ADHD is that it can be difficult to diagnose and treat, because there are many different conditionsRead MoreAn In-Depth Analysis on the Prescription of Stimulant Medication as a Treatment for ADHD1141 Words   |  5 Pages Stimulant medication could be the miracle drug, or the most harmful thing to hit the younger generations. Medications such as Adderall and Ritalin are playing a prominent role in many adolescents’ lives, or the lives of people close to them. There is an â€Å"underground market† for medications like these, and the market is growing quickly. Whether just to make sure they pass that next test, or if they really believe they need it, stimulants’ popularity is soaring, and not just amo ng adolescents butRead MoreAttention Deficit Hyperactive Disorder ( Adhd )963 Words   |  4 Pages Attention Deficit Hyperactive Disorder Mizeldrick K. Marshall Holmes Community College Attention Deficit Hyperactive Disorder Attention deficit hyperactivity disorder (ADHD) is a common neurobehavioral disorder most commonly diagnosed in children. Children can be diagnosed as early as the age of 7. Boys and girls can be diagnosed with ADHD but this disorder is seen more in the behavior of boys. Adults can also develop symptoms and be diagnosed as well. It was originally called hyperkineticRead MoreSociological Analysis On Attention Deficit Hyperactivity Disorder1622 Words   |  7 Pages Sociological Analysis of ADHD Introduction â€Å"ADHD† stands for â€Å"Attention Deficit Hyperactivity Disorder†, while many people use the word disorder and disease as if they were one and the same, they are in fact not. While a disease is an incorrectly functioning organ, part, structure, or system of the body resulting from the effect of genetic or developmental errors, infection, poisons, nutritional deficiency or imbalance, toxicity, or unfavorable environmental factors; illness; sickness; ailmentRead MoreAttention Deficit Hyperactivity Disorder ( Adhd )1552 Words   |  7 PagesATTENTION DEFICIT HYPERACTIVITY DISORDER Seth was a second grader at West Elementary. He constantly got reprimanded by his teachers for not paying attention in class. He could not understand the information given to him during the school day. He thought he was stupid and useless. But he was not. His parents got him tested by a doctor for ADHD. He is one of many kids in the United States who have been recognized as having it. Attention Deficit Hyperactivity Disorder is a major issue in the educationRead MoreAttention Deficit Hyperactivity Disorder ( Adhd )1561 Words   |  7 PagesIntroduction: Definition: Attention Deficit Hyperactivity Disorder (ADHD) is a â€Å"persistent pattern of inattention and/or hyperactivity-impulsivity that is more frequently displayed and more severe than is typically observed in individuals at a comparable level of development†. (1) Excessively hyperactive, inattentive and disruptive children have been described in literature since the nineteenth century. (2) Despite this, ADHD has only been recognised as a mental health condition since the 1960s,Read MoreThe Numbers Can Be Mind Blowing ! Ever Since Attention Deficit / Hyperactivity Disorder ( Adhd )2801 Words   |  12 PagesThe numbers can be mind-blowing! Ever since Attention-Deficit/Hyperactivity Disorder (ADHD) has been surveyed on a national level the numbers of affected persons diagnosed with the disorder has continued to climb. According to the Centers for Disease Control and Prevention (2013) ADHD was first surveyed, using input from parents and providers, in 1997. Not only have numbers of diagnosed patients and population percentage with the disorder shown an upward trend in growth, so have the number ofRead MoreThe Ethics of Giving Children ADHD Medication1642 Words   |  7 PagesAttention Deficit Hyperactivity Disorder (ADHD) is a psychiatric disorder that causes children to have problems with paying attention, trouble with following instructions, have impulsive behaviors and become easily distracted. Medications, such as Adderall and Ritalin, are used to treat the symptoms of this disorder by helping the patient to focus and pay attention while also curbing their impulsive behavior and hyperactivity. Side effects of these medications are, but not limited to, anxiety, addiction

Evaluating the efficacy of focus group discussion †Free Samples

Questions: 1. What type of selection should be adopted by the company? 2. What is considered in time of screening the application forms? 3. What is the basic objective of the preliminary interview? 4. What should be the size of groups for final selection? 5. Why is a case distributed in advance amongst the candidates in final selection? 6. What is the information on the basis of which the personal interview is conducted? Answers: Introduction Hindustan Lever Limited or Hindustan Unilever is a reputed company and takes utmost care in selection process of its employees (Hul.co.in 2018). There are several stages involved in the selection process that includes evaluation of the candidates from academic, cognitive and logical analytical perspectives. The company has several divisions like Food, Homecare brands, personal care brands and water purifier brand, and the employment is done keeping in mind the several requirements of these departments (Hul.co.in 2018). Answer 1 The company selects its employees through several rounds of severe screening and evaluating. There are primarily three steps in which the selection process is completed, these are Screening of application forms, preliminary interview, and final selection. These are the basic and very common three stages of HR selection process (Harrison 2012). The candidates are asked to submit their Curriculum Vitae which are screened and shortlisted candidates are called for interview after which the final selection is done. The company should adopt the policy of selection through structured interviews in which specific knowledge based questions about the field in which the candidate is selected. These questions are predetermined and the candidates are marked according to their knowledge of work. This kind of selection process is very effective in understanding what can be the possible performance of the employees. The applicants will also come prepared for the interview by researching about the company from beforehand. Question 2 The candidates and the applicants send the application forms and CV according to the job requirement. The company follows a strict process where it is carefully observed whether the CVs are actually compatible to the job or not. Technology is primarily responsible for reducing the time and energy for the selection process. There are tools and software which can be used to shortlist the eligible candidates (Scarborough 2012). The software does this by matching the criteria and the applicants profile. If the required qualifications are found, then the candidate is shortlisted. This is called the candidate management and applicant tracking systems. The reduction of time in the screening of the application forms leave more room for dedicating to the candidates personal interviews in which in-depth analysis of the candidates abilities can be done personally by the HR manager. Question 3 The preliminary interview is just the next stage after the evaluation and screening of the application forms and CV. The curriculum vitae or the application forms are not the original reflection of the candidates ability and attitude towards work (Lipovsky 2014). Only knowing about the degrees of the candidate does not give a clear indication of behavioral traits like whether the candidate is flexible enough, team worker, and spontaneous or not. Therefore, after the first stage of selection of the forms, in the next stage preliminary interview is conducted with as many candidates as possible. The main motive or the basic objective of this preliminary interview is to understand the candidates personally and to comprehend whether the candidates are fit for the particular job or not. The preliminary interviews are not as in-depth as the final interview processes; however, it is deep enough to understand the potentials of a candidate to work in a particular company. Question 4 After the preliminary interview is conducted the next stage of the company for the selection process is to conduct group discussion session with the candidates and then to go for the final interview process. The group discussion process can be completed including small teams of 4 or 5 people. If the group is too big then the problems of speaking over each other and inability to differentiate between the points made by individual members may arise (Arthur 2012). Therefore, the group discussion teams need to be small so that every member may get the chance to speak, debate and explain their perspectives. The final interview, however should be one to one, and each individual must be assessed separately in order to understand the full potential of the individual in detail and accurate manner. The final interview is the stage where the final decision regarding whether the employee will be taken by the company or not is made, hence it is very crucial. Question 5 The group discussion process in the company is composed of two steps, one is to conduct group discussion on any political, social or economic issues of recent times (Boateng 2012). However, there is a second round of interview in which the candidates are supplied with a case study which is to be analyzed by the candidates and the discussion happens based on the case study. The candidates are given some time to analyze the case studies and comprehend. The reason behind giving the candidates the required case studies in advance is to let them use their analytical skills to understand the scenario properly and then participate in the group discussion with informed knowledge. The process not only helps in understanding the analytical skills of the applicants but also lets the manager understand the ability of explanation by the candidates. Answer 6 Before the final interview is conducted the candidates have already gone through several stages of the selection process. These are, the screening of the CV and the applications, the preliminary interview, and the two phases of group discussion. Therefore, already before the final interview considerable amount of information is already available with the management on the basis of which an opinion can be formed. The information that are already available are the general knowledge of the candidates and their knowledge about the work, their clarity in understanding, qualities of leadership, convincing power, tolerance level and ability to express. These are the heads under which each candidate is marked and taking into consideration the mark sheet the final interview is conducted. The team which selects the employees consist of the HR manager, and the manager of the department in which the recruitment is made. Conclusion It can be concluded that the company has an elaborate and effective process of Human resource selection in which each of the candidates have to go through rigorous multi-layered selection process after which they are absorbed into the company. Various departments play crucial role in the selection process and the respective heads of the department for which recruitment is done plays important role in the selection. References: Arthur, D., 2012.Recruiting, interviewing, selecting orienting new employees. AMACOM Div American Mgmt Assn. Boateng, W., 2012. Evaluating the efficacy of focus group discussion (FGD) in qualitative social research.International Journal of Business and Social Science,3(7). Harrison, R., 2012.Employee development. Universities Press. Hul.co.in., 2018.Apply now the start of an important journey. [online] Hindustan Unilever Limited website. Available at: https://www.hul.co.in/careers/student-opportunities/apply-now/ [Accessed 23 Feb. 2018]. Hul.co.in., 2018.Brands. [online] Hindustan Unilever Limited website. Available at: https://www.hul.co.in/brands/ [Accessed 23 Feb. 2018]. Lipovsky, C., 2014. The CV as a multimodal text.Visual Communication,13(4), pp.429-458. Scarborough, D.J., Chambless, B., Becker, R.W., Check, T.F., Clainos, D.M., Eng, M.W., Levy, J.R., Mertz, A.N., Paajanen, G.E., Smith, D.R. and Smith, J.R., 2012.Electronic employee selection systems and methods. U.S. Patent 8,265,977.