Lesson 3 Assignment 3 Time Value of Money.
Read the following:
Ms. Paige Turner has inherited a pile of cash from a long lost Uncle who resided in Key West. Ms. Turner has spent a portion of the funds on necessities- corvette, stereo, and a
party with live entertainment performed by KC and the Sunshine Band, the Captain & Teneal, and Barry Manilow. The money she has left she would like to invest. You are her
financial advisor and she asks you the following questions:
1. How much would my investment be worth in 20 years if I invested in a fixed account at 6% per annum?
2. If I put $12,000 per year into an annuity, what will it be worth in 30 years if I can earn 8% per annum?
Amount to invest $300,000.
Understanding Time Value of Money is critical. Not only is it used in business, but it is used by each of us throughout life (retirement accounts, home mortgages, loan financing,
etc.).
Requirements:
1. APA format required.
2. Length (3-4 pages including cover page and reference page)
3. Write in third person.
4. Your name must be on your cover sheet.
5. Your paper should include the following:
Brief description of the risk and reward of each option.
Include the calculated values requested . I expect to see calculations. It is okay to use Excel to do calculations, just make sure you submit your Excel spreadsheet
(use email to submit).
Provide a recommendation on which option to choose and support your choice.
6. Be sure to include references and use proper citations.
