Question

Convert time value of money (TVM) problems from words to time lines.

Answer 1

Drawing time lines: Uneven cash flow stream; CF. = -$50, CF1 = $100, CF2 = $75, and CF3 = $50 Uneven cash flow stream Li% | -50 100

Drawing time lines: Uneven cash flow stream; CF. = -$50, CF, = $100, CF2 = - $75, and CF3 = $50 Uneven positive and negative cash flow stream Ti% -50 100 -75

Drawing time lines: Uneven cash flow stream; CF. = -AED 20,000, CF1 = - 3000, CF2 = 5000, CF3 = 5000, CF4 = 5000, CF5= 5000, and CFG= 5000, Uneven positive and negative cash flow stream 0 1 2 3 4 5 6 - 20,000 -3000 5000 5000 5000 5000 10,000

Drawing time lines: i.$100 lump sum due in 2 years; ii. 3-year $100 ordinary annuity i. $100 lump sum due in 2 years 1 2 Li% 100 ii. 3 year $100 ordinary annuity 0 I i% 100 100