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PRINCIPLES OF MONEY-TIME RELATIONSHIPS

PRINCIPLES OF MONEY-TIME RELATIONSHIPS. MONEY. Medium of Exchange -- Means of payment for goods or services; What sellers accept and buyers pay ; Store of Value -- A way to transport buying power from one time period to another; Unit of Account --

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CHAPTER 3

CHAPTER 3. PRINCIPLES OF MONEY-TIME RELATIONSHIPS. MONEY. Medium of Exchange -- Means of payment for goods or services; What sellers accept and buyers pay ; Store of Value -- A way to transport buying power from one time period to another; Unit of Account --

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ECONOMIC EQUIVALENCE FOR FOUR REPAYMENT PLANS OF AN $8,000 LOAN

ECONOMIC EQUIVALENCE FOR FOUR REPAYMENT PLANS OF AN $8,000 LOAN. Plan #1: $2,000 of loan principal plus 10% of BOY principal paid at the end of year; interest paid at the end of each year is reduced by $200 (i.e., 10% of remaining principal)

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Principal paid - PowerPoint PPT Presentation

PRINCIPLES OF MONEY-TIME RELATIONSHIPS

CHAPTER 3

ECONOMIC EQUIVALENCE FOR FOUR REPAYMENT PLANS OF AN $8,000 LOAN