Thursday, January 30, 2020
Time value of money paper Essay Example for Free
Time value of money paper Essay Introduction            Before dwelling on the various applications of Time Value of money paper, it is imperative to clearly understand what the whole concept of time value of money is all about. The whole concept is based on the premise that all investors prefer receiving a certain amount of money today rather than the same amount in future, while holding everything else constant. Money in actual sense has a time value, which is an economic theory brought about by three reasons that include inflation, liquidity and risk. (Tuller, Lawrence W.1997)  This is based on the argument that if the investor receives the money today, he/she can earn interest on that amount until the specified future date. For example earning $100 today is preferable than earning this same amount in one years time. This is because choice of either spending the money today or investing it for future. Thus if one chooses to earn $100 one year from now, spending is also deferred for a similar period and will miss out on the opportunity to invest it. (Tuller, Lawrence W.1997) Financial application of the time value of money The Time Value for money is a very fundamental principle of investing and budgeting and all standard calculations are based on the basic formula of the present value of a future sum that is discounted to the present. The concept is fundamental in many aspects of finance; this is because it has an impact on consumer finance, business finance and government finance. (DeThomas, A 1992). The Time value of money concept has much valuable financial relevance. The concept finds some of its major and important uses in the measurement of various trade-offs in spending and saving (DeThomas, A 1992).  On a personal budgeting level, it has important consequences. For example one may make the decision to invest because the time value of money is greater in the future if the market interest rates stand at say 6% which is considered a high rate, however if the rates are much lower than this say between 1%- 2%, one may opt to spend the money because the time value of money today is higher. (DeThomas, A 1992). The time value of money is extremely useful in the following sectors of business: Commercial banks Credit card financial service companies Insurance companies d. State governments lotteries  Retirement plan financial service providers The basic concept of time value for money that includes compounding, discounting and annuities are frequently used in the retirement savings plan to determine the amount of the deposit that is needed to accumulate a certain future plan.  Commercial banks Commercial banks extensively find great use of time value for money; on a daily basis they use various time value of money formulas. It is used to calculate the amortization of loans for home mortgages that is described as present value of an annuity. In the calculation of mortgages, the future value of the annuity formula is used to determine monthly payments that the borrower is supposed to make. The concept is also used in the calculation of the future value of all the savings in the fixed deposit ( Crosson, S.V. Needles, B.E. 2008) Credit card financial service companies Under normal circumstances credit card financial services issue loans to the card holders, towards this end the time value of money formula is used to determine the schedules for loan repayment and also used in calculating the future value of the loan which is the ending balance. ( Crosson, S.V. Needles, B.E. 2008) Insurance Companies To illustrate how the insurance companies make use of the time value of money is when and one buys a life insurance. He/she gives money to the insurance company which doesn’t have to pay the beneficiaries the sum accruing until the principal dies, this can translate into many years. On the other hand the insurance company decides to invest the money in various instruments with the hope there value will increase. The insurance company is bound to benefit greatly the longer it has to invest the money, which it uses to pay back the benefit. The longer the insured lives the more the time the insurance company has to invest the money before paying up. ( Crosson, S.V. Needles, B.E. 2008) Thus if you buy the insurance when you are older it means that your lifespan is shorter, this also applies to those people with ailments or are unhealthy. That is the reason why the older or unhealthy people pay more in premiums compared to the young and healthy; the time value of money is applied the insurance company earns more money the longer the premium stays. ( Crosson, S.V. Needles, B.E. 2008) State governments lotteries Lottery is one of the methods that the government utilizes to provide funding for education in America. However those oppose the government for raising such money through lottery argue that the government takes advantage of the ignorance of the laymen of the time value of money with lotteries that hit a million dollars. The winner of such a lottery does not get the million dollars upfront; rather one receives $ 50,000 per annum for the next 20 years. The state cannot pay that money upfront because of the time value of money where a million dollar now is more worth a million dollars in future. ( Crosson, S.V. Needles, B.E. 2008) Components of a discount/interest rates  A sum of five different components makes up the rate of return at which an investment trades in financial theory; the five components are discussed here below and include: a) The real risk-free interest rate  This forms the basis at which all other investments are analyzed and compared. It is basically the rate of return an investor would expect to earn in risk less environment devoid of any form of inflation. (Carl S. W et al 2001) b) An Inflation Premium To adjust an investment’s expectation for a future inflation a certain rate is added towards this purpose; this is what is termed as the inflation premium. (Carl S. W et al 2001) c)  Liquidity Premium Liquidity premium is required in circumstances where investors are not willing to pay for the full value of the stocks or assets especially if there is a possibility of not selling them as quickly as they would wish because of buyer scarcity. The liquidity premium serves the purpose of compensating the potential loss. How big a liquidity premium is, is dependent on the investors perception of the activity of the market. A good example of where the liquidity premium is required is in such investments as family controlled company with thinly traded investments like bonds and stock. (Carl S. W et al 2001) d) Default risk premium Default risk premium indicates how investors perceive the likelihood of a company defaulting to meet its obligation or the likelihood of it going bankrupt. In most cases when there are telltale signs of a company in trouble, the investors demand a default risk premium which eventually leads to the collapse of the company.  (Carl S. W et al 2001) e) Maturity Premium The maturity premium commonly refers to the difference that exits between the interest rates of a short term default free bond and a longer maturity default free bond. The price fluctuation of the interest rates change is determined by how further in the future the bonds of the company have matured which in turn determine the price.  (Carl S. W et al 2001) REFERENCES Carl S. Warren, James M. Reeves, Philip E. Fess, James M. Reeve (2001): Financial and          Managerial Accounting: South-Western College Crosson, S.V., and Needles, B.E. (2008): Managerial Accounting (8th Ed). Boston:       Houghton Mifflin Company. DeThomas, Art (1992): Financing Your Small Business: Techniques for Planning,         Acquiring Managing Debt: Oasis Press, Tuller, Lawrence W. (1997): Finance for Non-Financial Managers and Small Business Owners: Adams Media
Wednesday, January 22, 2020
EMMA :: essays research papers fc
The differences between Emma By Jane Austen and The History of Mary Prince By Mary Prince      The differences between Emma by Jane Austen, a classical novel, and the autobiographical slave narrative, The History of Mary Prince are many and varied, but what stood out in my mind most prominently was the difference in character development. The novel delved very deeply into the life, character, breeding, make-up, and personality of it’s subjects, but the narrative, instead, developed Prince in breadth, not depth. While each approach gave the reader insight into the respective lead characters, one came away with a better understanding of who Emma was and why.                         A novel is a long work of written fiction. Most novels involve many characters and tell a complex story by positioning the characters in a number of different situations. A novels chief interest is in the human character as it manifests in society. The individual naming of the characters in a novel gives singularity to each person. Novels tend to be richly detailed and often have an exhaustive analysis of human relationships. In a novel, the writer has the freedom to develop the plot, characters, motifs, and theme slowly. The novelist can also circle the main plot with subplots that flesh out the tale. Furthermore, novels have numerous shifts in time, place, and focus of interest. Because a novel is a concentrated segment of life, the ending is usually drawn to a pre-designed conclusion.      A narrative is the autobiography of one’s life experiences and views. It is usually written in the first person point of view and records a long and complicated journey from one’s life experiences. Many narratives are documents of propaganda, which have a clear sense of their audience. The question of identity is often central to the genre in narratives,                                                                                                               2 as many are quests for identity. In many female slave narratives, motherhood tends to be a central theme. Ultimately, narratives elicit sympathy and empathy from their audience and are written to win approval of different actions.      I feel that the major differences between a novel and a narrative are characteristic detail and development and the level of interactions between characters. Furthermore, a novel is a fictional piece of writing which is created by the author, who uses imagination and past life experiences of their life to make the story. In contrast, a narrative is a one dimensional autobiography which is created by the narrator who shares their own personal life story with the reader.      After a close-reading of each text, I found both writings to be very different from EMMA :: essays research papers fc The differences between Emma By Jane Austen and The History of Mary Prince By Mary Prince      The differences between Emma by Jane Austen, a classical novel, and the autobiographical slave narrative, The History of Mary Prince are many and varied, but what stood out in my mind most prominently was the difference in character development. The novel delved very deeply into the life, character, breeding, make-up, and personality of it’s subjects, but the narrative, instead, developed Prince in breadth, not depth. While each approach gave the reader insight into the respective lead characters, one came away with a better understanding of who Emma was and why.                         A novel is a long work of written fiction. Most novels involve many characters and tell a complex story by positioning the characters in a number of different situations. A novels chief interest is in the human character as it manifests in society. The individual naming of the characters in a novel gives singularity to each person. Novels tend to be richly detailed and often have an exhaustive analysis of human relationships. In a novel, the writer has the freedom to develop the plot, characters, motifs, and theme slowly. The novelist can also circle the main plot with subplots that flesh out the tale. Furthermore, novels have numerous shifts in time, place, and focus of interest. Because a novel is a concentrated segment of life, the ending is usually drawn to a pre-designed conclusion.      A narrative is the autobiography of one’s life experiences and views. It is usually written in the first person point of view and records a long and complicated journey from one’s life experiences. Many narratives are documents of propaganda, which have a clear sense of their audience. The question of identity is often central to the genre in narratives,                                                                                                               2 as many are quests for identity. In many female slave narratives, motherhood tends to be a central theme. Ultimately, narratives elicit sympathy and empathy from their audience and are written to win approval of different actions.      I feel that the major differences between a novel and a narrative are characteristic detail and development and the level of interactions between characters. Furthermore, a novel is a fictional piece of writing which is created by the author, who uses imagination and past life experiences of their life to make the story. In contrast, a narrative is a one dimensional autobiography which is created by the narrator who shares their own personal life story with the reader.      After a close-reading of each text, I found both writings to be very different from
Tuesday, January 14, 2020
Study Plan
All world’s population is 7 billion, 1. 3 billion people spoken Chinese in worldwide, approximately worldwide 1 in every 6-7 person can speak chinese. If you believe Chinese to be one language, rather than a grouping, it is the single most commonly spoken language on the planet. It is spoken in countries like China, Taiwan Singapore. For people interested in becoming fluent in Chinese, it can be intimidating and challenging. As Mongolia and China have been neighbors, many Mongolians are interested in China and its language and culture as well as Mongolians are more familiar about China than any other nation in the world.First reason of choosing China is it I’m familiar with country, secondly Chinese is getting more and more influential learning it gives me more advantage in the future. The international communication and trade program interests me because it gives me good intellectual. In today’s globalizing society, studying in foreign high developed country to be very significant to bring development to own business and individual’s development. I have information about Chinese education system which is excellent at trying theoretical knowledge to the practice work thus it affected me to choose it.Studying with people from various countries ;learning selected experience of such countries thus sharing information to be very important to the human development. Due to my studies, I am aware that my Chinese Language skills are still to increase. I have studied Chinese a little, but it’s not perfect yet. But I constantly try to improve myself by doing personal work. Besides it is one of the reasons I want to live and study in China. For my point of view, it’s the best way to acquire good accent and talk â€Å"true†Chinese, not only based on readings.As for a citizen, I would like to give my contribution to the development of my country as possible as I can on studying well in the China. I have many advantages to st udy successfully and keep studying with majoring on my profession without any difficulties further. I have shown some of my study plan as follows. – Study successfully majoring on my own qualification at the University; Attentively learn all subjects in accordance with appropriate term and planned hours; Get acquainted with the students who have the same purposes as well learn from Chinese history, culture, and life.I hope that you will look favorably on my application. Therefore accepting this scholarship is a big opportunity of good life and chance to become intelligent knowledge person that I dreamed of and it will be opening door to the my future. As for me, I have full confidence in myself that I am able to study Chinese as faster as I can. I have many advantages to study successfully and keep studying with majoring on my profession without any difficulties further.
Monday, January 6, 2020
Comparison Of Technology In Fahrenheit 451 - 1151 Words
Technology is on the rise which has changed people’s lives. Today’s technology a positive improvement which has grown over the past years. Today everyone uses technology, from old to new. Both Ernest Cline and Ray Bradbury present worlds that are run by technology.The technology in ready player one and Fahrenheit 451 is both bad and good. Fahrenheit 451 is all about a fireman called Guy Montag who does the opposite of what fireman do, starting fires instead of putting them out. The society in Fahrenheit 451 is forbidden from reading books.People spend their time watching big TVs, radios.Montag’s wife Mildred spends her time watching and is addicted to sleeping pills.Montag starts to questions what he does and the reason why books are†¦show more content†¦In comparison to the world Ready player one. This novel shows a positive and promising future with the use of technology.The OASIS allows kids to be engaged and interactive with learning in fun way especially when it comes to history.â€Å"During our World History lesson that morning, Mr. Avenovich loaded up a stand-alone simulation so that our class could witness the discovery of King Tut’s tomb by archaeologists in Egypt in AD 1922,†(Cline, 48). The way history is made fun makes kids want to come to school and have fun and actually enjoy learning instead of sitting in the classroom and learning about things theyve never seen or things that happened before there were born.People always look at technology as a pathway to their way of life but in these two novel technology is used in both good and bad.In Fahrenheit 451 technology is used in ways the leads to losing imagination and becoming puppets and in Ready player one technology is used as a means of education and expanding knowledge to people. In addition, people are losing focus on the main importance of life and they only focus is technology and what benefits it brings them either bad or good.In ready player one, the author shows corruption through Nolan Sorrento, IOIs Head ofShow MoreRelatedTechnology And Technology In Ray Bradburys Fahrenheit 451884 Words  | 4 PagesFahrenheit 451 was written almost 50 years ago in 1953 by Ray Bradbury and yet it has still caused a great debate in our society today, two of these major discussion is very well used in our society the twenty century. One of these debates is Technology, technology was one of the major causes of the burning of books in 451 and how people in the society start depending on technology to survive. The second is violence, violence has played so much role in 451 and yet the society was clueless about what’sRead MoreEssay about Future Concerns - Gattaca and Fahrenheit 4511562 Words  | 7 PagesPopular fictions texts expressing views of the future e ducate audiences about current issues and the dystopias that develop from them. Texts such as the film ‘Gattaca’, directed by Andrew Niccol and novel ‘Fahrenheit 451’ by Ray Bradbury explore futuristic societies and the implications that become of their innovation. Although entertaining, texts such as these are didactic and must be taken seriously, as they communicate messages to audiences regarding prevalent concerns and possible futures basedRead MoreFahrenheit 451 Vs. 1984970 Words  | 4 PagesFahrenheit 451 vs. 1984 Ray Bradbury and George Orwell share a very similar theme in their two novels, Fahrenheit 451 and 1984. 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Fiction undoubtedly needs to be included in the high school English curriculum because it opens our minds to important issues, prevents us fro m becoming too technology dependent, and make us betterRead MoreSocial Critism Presented throughout Fantasy in Fahrenheit 451 by Ray Bradbury and The Memoirs of a Survivor by Doris Lessing1515 Words  | 6 Pagesaddresses cultural, economic and political issues in a society. This paper will analyze two fiction based novels and the social criticism present throughout this genre of fantasy. With regards to social criticism, this paper will compare and contrast Fahrenheit 451 by Ray Bradbury and The Memoirs of a Survivor by Doris Lessing by analyzing how criticism is displayed according to the issues present in the novels, how violence or madness is portrayed and lastly, the pastoral utopian concept of a better placeRead MoreFahrenheit 451 By George Orwell962 Words  | 4 Pagesnovel Fahrenheit 451 depict a dystopian society. 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The title mentions the number 451 which is the degreeRead MoreCritical Analysis Of Fahrenheit 4511266 Words  | 6 PagesTo begin, in Fahrenheit 451, Ray Bradbury incorporated: a censorship aspect intended for the book, social commentary, and the social critical analysis which relates to conflicts in our world today. To continue, censorship can be considered a â€Å"threat†to society, for example, Bradbury uses the concept of the overuse of media and how it can affect the world and the people around you. Furthermore, Bradbury’s key focus was to s atirize the excessive use of television and the media as a news and entertainmentRead MoreThe Similarities Between Societies1321 Words  | 6 Pagesspeech. In the book Fahrenheit 451 Bradbury has created a society in which a higher power has gone as far as to increase entertainment through technology than through books. The people in this society do not read books, enjoy nature, spend time by themselves, think independently, or have meaningful conversations. Instead, they drive very fast, watch excessive amounts of television on wall-size sets, and listen to the radio on â€Å"Seashell Radio†sets attached to their ears. Fahrenheit 451 doesn’t provideRead MoreFahrenheit 451 : Technology And Happiness1177 Words  | 5 Pages There is no question that science and technology is as essential to functioning in an advanced society as soil is essential for a flower. In numerous communities, technology is so often an asset to be yearned for. We want to have the best smartphone, the best internet, the smartest home possible. Every piece of mainstream technology strives to make life easier, and yet it appears to be quite the contrary. Since the 1900s, we have gained dishwashers and automatic floor sweepers. Yet a question remains:
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