- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Case Study #2
Data:
Janice will make a yearly $2,000 payment (this is an annuity) for forty years into a traditional IRA account.
Calculations:
Given that the discount, or interest, rate is 6 percent, what is the current value (that is, the present value) of Janice’s investment in today’s dollars? The formula is:
PVn,i = Payment * [ 1–( 1/(1 + i)n )]/i (the present value of an annuity factorn,i)
