Unit 6 Discussion Board
Question Description
I’m working on a Finance question and need guidance to help me study.
Topic: Annuities
The time value of money is used for many important financial decisions that could affect long-term goals. The interest rate you pay on a loan can affect the amount you pay each period.
An advertised monthly lending rate of 9% is about 11% per year. This difference between an advertised rate and the annualized rate is based on finer TVM details that may be overlooked by borrowers. Discuss how you may have used TVM in a recent investment or loan decision and explain the TVM involved in your transaction.
If you have not used TVM in a past financial transaction, what practical TVM application would you expect to encounter in your future? Explain.
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