Unit 2 - Assignment 1



Unit 2 - Assignment 1

Random Number

6

1

2

1

9

6

9

6

3

In order to generate random numbers I just copy the formula on Excel Spread sheet and press enter. Through this I generate 9 random numbers and then paste them again so that I got the above result. Money has a time value. It means that if a person has a dollar in possession is preferred over a dollar that person is expecting to receive at some point of time in the future. If the dollar is postponed, it means that the consumption is also postponed. As a result, a person must have significant return in order to convince that person to delay his or her consumption today to utilize more in the future. It is done through getting a return over time, which is two forms, either interest or a capital gain. It means that the dollar which will be invested will grow to an increased amount in future because of the return on it. In other words, it can be said that the dollar amount that will be paid or received in future is worth less today (studyfinance.com). This is because the smaller amount today could be invested and would grow to the greater amount in the future. The time value of money reflects the relationship between time, financial flows and interest rates. All things being equal, a person may prefer to hold a certain amount of money on checking account at that moment, than to receive the same amount at a future date. To concede, however, that to put the money available to such a company B, for a given time, it will have to pay in addition to reimbursement of the amount the person had paid the agreed term, compensation.Business must make financial decisions while putting money ...