Explore BrainMass

Time Value of Money

Your parents are giving you $500 a month for 5 years while you attend college to earn both a bachelor's and a master's degree. At a 7% discount rate, what are these payments worth to you when you first enter college?

a) $22,681.13
b) $24,601.18
c) $25,251.00
d) $27,209.17
e) $30,000.00

Solution Preview

We will apply the formulae of present value of ...

Solution Summary

Response provides steps to analyze Time Value of Money cases