Mrs. S has a flair for grooming dogs and cats. Mrs. S has been living with a roommate in an apartment near her work in order to reduce her living expenses. However, she continuously uses her credit card to make ends meet. Her personal property consists of a 2005 car, a television, a digital camera, a laptop computer, clothing and home furnishing with a total value of $7,300. Character in this case: Mrs. S. Adequate information: Monthly income is $1,750. Living expenses is $1,210. Personal property is $7,300. Savings are $2,000. Student loan is $3,000. Credit cards debt is $2,400. To determine: Types of time value of money . Introduction: Present value : It is the current value of a future sum or stream of a cash flow, given specified rate of return . Future value: The value of any security or cash at a specified date in future, based on current value of that asset.

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Chapter 1, Problem 3CC

Summary Introduction

Case summary:

Mrs. S has a flair for grooming dogs and cats. Mrs. S has been living with a roommate in an apartment near her work in order to reduce her living expenses. However, she continuously uses her credit card to make ends meet. Her personal property consists of a 2005 car, a television, a digital camera, a laptop computer, clothing and home furnishing with a total value of $7,300.

Character in this case: Mrs. S.

Adequate information:

Monthly income is $1,750.

Living expenses is $1,210.

Personal property is $7,300.

Savings are $2,000.

Student loan is $3,000.

Credit cards debt is $2,400.

To determine:

Types of time value of money.

Introduction:

Present value: It is the current value of a future sum or stream of a cash flow, given specified rate of return.

Future value: The value of any security or cash at a specified date in future, based on current value of that asset.

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