Essay on Time Value Of Money - 1252 Words

Time Value of Money The time value of money serves as the foundation of finance. The fact that a dollar today is worth more than a dollar in the future is the basis for investments and business growth. The future value of a dollar is based on the present dollar amount, interest rate and time period involved. Financial calculators and tables can assist in computing the future and present values, which eases the pain of the mathematically challenged. Yield or rate of return can also be calculated. One financial application of the time value of money is buying or selling a house mortgage note. Although normally handled by financial institutions, individuals can use this as an investment opportunity. The first step is having the note†¦show more content†¦The MBA graduate will add to this calculation the opportunity cost which D. Henderson points out is redundant in word use, but an invaluable concept to the financial world. The true cost of something is what you give up to get it. Â… as contract lawyers and airplane pilots know, redundancy can be a virtue. In this case, its virtue is to remind us that the cost of using a resource arises from the value of what it could be used for instead. (2002). In the above example, if the consumer was to buy a less expensive car, or finance less of the car price, the funds not being used for car payments could be invested for a higher yield. The table (See Amortization Table 1) in the text demonstrates how part of the loan payment is applied towards the principle and rest goes towards reducing the principle amount (Block, Hirt, 2005). The main learning of the amortization table is that the owner will pay slightly more in interest costs (41,000) as he did for the loan of 40,000. So the car that was priced at 40,000 actually ended up costing the owner 81,000. The amount paid is compounded if the owner takes into consideration the money that could have been earned if part of those funds had been invested. At a return rate of 8%, if the buyer had purchased a less expense car at 30,000 and invested 500 per year over 20 years, he would have 22,881 outShow MoreRelatedTime Value of Money1028 Words   |  5 Pagestoward understanding the relationship between the value of dollars today and that of dollars in the future is by looking at how funds invested will grow over time. This understanding will allow one to answer such questions as; how much should be invested today to produce a specified future sum of money? Time Value of Money In most cases, borrowing money is not free, unless it is a fiver for lunch from a friend. Interest is the cost of borrowing money. An interest rate is the cost stated as a percentRead MoreTime Value of Money1033 Words   |  5 PagesTime Value of Money (TVM), developed by Leonardo Fibonacci in 1202, is an important concept in financial management. It can be used to compare investment alternatives and to solve problems involving loans, mortgages, leases, savings, and annuities. TVM is based on the concept that a dollar today is worth more than a dollar in the future. That is mainly because money held today can be invested and earn interest. A key concept of TVM is that a single sum of money or a series of equal,Read MoreTime Value of Money967 Words   |  4 PagesTime Value of Money The time value of money relates to many activities and decision in the financial world. â€Å"Understanding the effective rate on a business loan, the mortgage payment in a real estate transaction, or the true return on an investment depends on understanding the time value of money† (Block, Hirt, 2005). The concept of time value of money helps determine how financial assets are valued and how investors establish the rates of return they demand. Many different types of companiesRead MoreTime Value of Money2180 Words   |  9 PagesFinance Ââ€" Time Value of Money We earn money to spend it and we save money to spend it in the future. However, for most people spending money in the present time is more desirable since the future is unknown. We can gratify the desire to spend money today rather than in the future by knowing the basic law in finance Ââ€" time value of money. This means that a dollar today is worth more than a dollar at some time in the future. Unfortunately, people very often want to buy things at the present time whichRead MoreTime Value of Money3904 Words   |  16 PagesTime Value of Money Problems 1. What will a deposit of $4,500 at 10% compounded semiannually be worth if left in the bank for six years? a. $8,020.22 b. $7,959.55 c. $8,081.55 d. $8,181.55 2. What will a deposit of $4,500 at 7% annual interest be worth if left in the bank for nine years? a. $8,273.25 b. $8,385.78 c. $8,279.23 d. $7,723.25 3. What will a deposit of $4,500 at 12% compounded monthly be worth at the end of 10 years? a. $14,351.80 b. $14,851.80 c. $13,997.40 d. $14Read MoreTime Value of Money5284 Words   |  22 Pages12/9/2012 Chapter 9 The Time Value of Money 1 Chapter 9- Learning Objectives ïÆ' ¼ Identify various types of cash flow patterns (streams) that are observed in business. ïÆ' ¼ Compute (a) the future values and (b) the present values of different cash flow streams, and explain the results. ïÆ' ¼ Compute (a) the return (interest rate) on an investment (loan) and (b) how long it takes to reach a financial goal. ïÆ' ¼ Explain the difference between the Annual Percentage Rate (APR) and the Effective Annual RateRead MoreTime Value of Money2092 Words   |  9 PagesTime Value of Money The time value of money (TVM) or, discounted present value, is one of the basic concepts of finance and was developed by Leonardo Fibonacci in 1202. The time value of money (TVM) is based on the premise that one will prefer to receive a certain amount of money today than the same amount in the future, all else equal. As a result, when one deposits money in a bank account, one demands (and earns) interest. Money received today is more valuable than money received in the futureRead MoreTime Value of Money2124 Words   |  9 PagesTime Value of Money: Simple Interest versus Compound Interest Outline I. Applications of Time Value of Money 1.1 Example One 1.2 Example Two 2. Interest 2.1 What is Interest? 2.2 Three Variables of Interest 1. Principal 2. Interest Rate 3. Time 2.3 Why is Interest Charged? 3. Simple Interest 3.1 What is Simple Interest? 3.2 Simple Interest Formula 4. Compound Interest 4.1 What is Compound Interest? 4.2 Compound Interest Formula Read MoreTime Value of Money712 Words   |  3 Pageswill pay the bank over the life of the loan? $123,945.04 4. What is the effective rate of interest on a CD that has a nominal rate of 7.25 percent with interest compounded monthly? EAR = (1+.0725/12)^12 – 1 = 7.5% 5. What is the future value of $4,950 placed in a saving account for six years if the account pays 3%, compounded quarterly? PV = 4,950 N = 6 x 4 = 24 I =3/4 = .75% Pmt = - FV = $5,922.24 6. Your firm, Vandelay Industries, has just leased a $32,000 BMW for youRead MoreTime Value of Money and Present Value1154 Words   |  5 Pagescollege 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $23,000 per year per child, payable at the beginning of each school year. The annual interest rate is 5.5 percent. How much money must you deposit in account each year to fund your children’s education? Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. Assume four years of college Solution: Cost of 1 year at

The Cuban Missile Crisis The Cold War - 1472 Words

. The Cuban missile crisis was one event that helped ignite the Cold War. It was a thirteen day confrontation between the United States and the Soviet Union over Soviet airborne missiles deployed in Cuba. It was the closest the Cold War came to escalating into a full blown nuclear war. It was an intense, 13-day political and military standoff in October 1962 over the installation of nuclear-armed Soviet missiles on Cuba, just 90 miles from US. The Cuban Missile Crisis was really about the location of weapons and the desire of both the Americans and Soviets to contain each other’s power in the world. The American advantage in weaponry led to the Soviets desire to counter it. Strategic weapons in Cuba were the best way to counter that. Until†¦show more content†¦By contrast, Nikita Khrushchev gave Castro a warm welcome in the USSR, which further worried the White House. Khrushchev knew that the USA had nuclear weapons based in Italy and Turkey aimed at targets in the US SR. He felt that this provided justification for the USSR to also place its nuclear missiles abroad. In the summer of 1962, Khrushchev personally issued an order for Soviet missiles to be shipped to the island of Cuba. Americans voiced their concerns about Soviet military activity in Cuba. In October 1962, an American U2 spy plane took a series of photographs over Cuba. The photos revealed a nuclear missile site being built by the Soviets. Every major American city was within range of nuclear missiles launched from Cuba. Kennedy’s response to Soviet actions brought the world the closest it had ever been to the point of nuclear war. 1b. 1c. The main events that marked the end of the Cold War were the fall of the Berlin Wall in 1989 and the breakup of the Soviet Union in 1991. The Berlin Wall had been the main symbol of the Cold War. It had kept people from Eastern Europe, which was communist, from escaping to the West. When the Wall came down along with other border barriers, it meant that people in the East could now leave. This pretty much meant the communist system was dead. The death was confirmed in 1991 when the Soviet Union fell apart. This made the remainder of the country muchShow MoreRelatedThe Cuban Missile Crisis : The Cold War1081 Words   |  5 PagesIRBM missiles to Cuba) turned away from its intended destination, which marked the end of the sinister Cuban Missile Crisis (â€Å"Bos†, pgh. 2). The Cold War was a perpetual state of political animosity entailing the employment of propaganda, ultimatums, and other nonviolent means, which existed between the two universal superpowers (the Unite d States of America and the Union of Soviet Socialist Republics [U.S.S.R.]) that had recently emerged at the closing of World War II. Albeit the Cold War is chronicledRead MoreThe Cuban Missile Crisis : The Cold War1323 Words   |  6 PagesWars have been going on since the beginning of time, whether it is fighting for your religions, fighting for land, and fighting for your rights and freedoms. Some wars cause dramatic amounts of deaths, but the Cold War resulted in none. The reason there were no deaths is due to the fact that the Cold War was just that, cold. The conflicts never heated up enough per say to cause a real war. Though the Cold war itself wasn’t a war fought in battle, there were parts caused by it such as the Korean WarRead MoreThe Cold War : Cuban Missile Crisis2377 Words   |  10 PagesMr. DuBois World Studies 19 June 2015 The Cold War: Cuban Missile Crisis Nuclear catastrophe was hanging by a thread ... and we weren t counting days or hours, but minutes. Soviet General and Army Chief of Operations, Anatoly Gribkov The closest the World has ever been to nuclear war was with The Cuban Missile Crisis. The lives of millions lay in the ability of President John F. Kennedy and Premier Nikita Khrushchev to reach an agreement. The crisis began when the United States discovered thatRead MoreThe Cold War And The Cuban Missile Crisis2976 Words   |  12 Pagesmaking war on the poor. Blind mother justice, on a pile of manure. Say your prayers and the Pledge of Allegiance every night. And tomorrow, you ll be feeling all right† (Song Lyrics by Mimi and Richard Farià ±a). Most know of and have studied the Cold War: lasting almost fifty years leaving most American citizens living in complete fear of nuclear annihilation at any moment in time. Many can even name important events in the Cold War, such as ‘The Berlin Wall Collapsing’ or ‘The Cuban Missile Crisis’Read MoreThe Cuban Missile Crisis During The Cold War1378 Words   |  6 PagesThe Cuban Missile Crisis occurred in 1 963 in a setting that was the high point of tension in the Cold War. The most significant background cause of the Cuban Missile Crisis was the underlying cold war ideology of capitalism vs communism. This was dramatically increased by the second key cause, a series of events that quickly built tensions between the super powers from 1959 such as the U2 incident, JFK’s response to the Berlin Wall, and the Bay of Pigs incident. The third cause was the relationshipRead MoreCuban Missile Crisis : Nature Of The Cold War1092 Words   |  5 PagesCOLD WAR ASSIGNMENT (Cuban missile crisis) Nature of the Cold war The cold war was a clash between two superpowers with competing ideologies, or sets of ideas. Although they had been allies against the common enemies of Germany and japan during World War 2, both sides distrusted each other. After the war this distrust evolved into a long term hostility. This era was called the ‘Cold war’ because the two superpowers never directly assaulted each other. This war was very political as it was foughtRead MoreThe Cuban Missile Crisis During The Cold War1612 Words   |  7 Pageswere involved in the Cold War. When Cuba accepted communism, the United States tried to drive out Cuba’s leader, Castro, during the Bay of Pigs, but it failed (Kauffman). The U.S. were concerned even more when they discovered Soviet Missiles in Cuba. Kennedy had established a quarantine to try and stop weapons coming to Cuba, but it was still a mystery when it came to what Kennedy’s response would be. Many Americans were in favor of using military actio n to remove the missiles, while critics of militaryRead MoreThe Cuban Missile Crisis Was A Key Part Of The Cold War2751 Words   |  12 PagesThe Cuban Missile Crisis was a key part of the Cold War, and one which major scholars and historians see as the closest the world has come to thermonuclear war. This has made it one of the most documented events of the Cold War, with journal entries, books and films being made about the defining thirteen day period, each giving a unique perspective and overview of the crisis. The fact that both the United States and the Soviet Union managed to avoid the use of nuclear weapons is seen by many as aRead MoreThe Cuban Missile Crisis Was A Big Event During The Cold War897 Words   |  4 PagesThe Cuban missile crisis was a big event during the â€Å"Cold War† that almost brought the world into a nuclear catastrophe. In this event the Soviet Union deployed around 100 tactical nuclear weapons to Cuba aiming to land in U.S. territory. The pos sibilities of a nuclear war was predicted by the president of the United States John F. Kennedy to be around a 33% chances of actually happening. The local Soviet commander in Cuba could have launched these weapons that were sent without additional codesRead MoreThe Cuban Missile Crisis Was A Harsh Time During The Cold War1602 Words   |  7 PagesThe Cuban Missile Crisis was a harsh time during the Cold War. About 50 years ago the USA and the USSR were at each others throat for a very pointless reason. This basically started because USSR planted nuclear bombs in Cuba which was pretty close to Florida. John F. Kennedy was the president at this time and he was not to fond of that idea. October 1962, JFK was warned that the USSR had the nuclear weapons set up in Cuba ready to attack and as a result of this situation, Kennedy then also placed

Oneness of Allah free essay sample

None has the right to be worshipped but He, the All-Mighty, the All-Wise. † [Surah Aal-‘Imran 3:18]. An eminent poet has elucidated his thoughts in a meaningful poem: In everything, there is a sign, Which proves to the unity of Allah Wondering then: How can people disobey God? Or how can a denier reject God? To Allah, in every move, And in every halt always a witness. The following aspects offer a wider perspectives and plain in proving the unity and Oneness of Allah: (1) The natural phenomena (2) Different aspects of divine laws. (3) The rationale of life (4) Logic or common sense. 5) Reaching to conclusion from the Names and Attributes of Allah. These aspects clearly prove the existence of Allah and exemplify the three basic concepts of Islamic Monotheism (Oneness of Allah), as mentioned earlier, which correlate with one another. Therefore, ascribing partner with Allah in any one of the three above-mentioned concepts, is tantamount to committing polytheism in all other concepts as well. We will write a custom essay sample on Oneness of Allah or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page For instance, If a person seeks Dua’a (supplication) from other than Allah is considered a kind of worship and clearly an act of Shirk or polytheism with Allah in His worship. In this context, invoking others (persons or things) than Allah is like seeking their intermediation and believing that they (intermediaries) can interfere and recommend to Allah on behalf of the supplicant and fulfill his/her requirements. This is completely an act of shirk or polytheism and tantamount to ascribing partner(s) with Allah, the Lord (Rabb) of the Universe. Moreover, a supplicant who assumes that others besides Allah also possessed the power of hearing and seeing and could answer his/her invocation (Du aa) is considered as an act of shirk (polytheism) as regards to Names and Attributes of Allah. First, it is a gross violation of divine laws to supplicate others than Allah. In no way this act is acceptable in Islam. Moreover, it is an act of Shirk (polytheism) if a person believing that with whom he/she engaged in supplication other than Allah can listen to him/her no matter whether faraway or closer. It is, therefore, considered as a major act of Shirk (polytheism) with Allah in His worship as associating or correlating someone or something with Names and Attributes of Allah, Who is the Lord (Rabb) of the universe. This is the reason that Allah has reiterated in the noble Qur’an encouraging people to ponder about the signs of Allah. Many verses in the Qur’an have explained focusing on this point. It is because, more the man used to ponder thinking about the signs of Allah the more he comes close to the truth. Furthermore, he would be more fearful of Allah to have Taqwah and tended adhere His commandments. The thinkers and intellectuals, who sought the path of the truth, therefore, reached unwaveringly to embrace Islam without fail. History has recorded many such events in the Pre-Islamic Ignorance era. The renowned intellectuals and poets of that period vehemently admitted and wholeheartedly declared that Allah is One though the society they lived in at that time was fully surrounded with polytheists and infidels. The most notorious intellectuals and prominent poets from among the ancient Arabs included Quss bin Saa’edat al-Eyadi and Zayd bin ‘Amr bin Nufail, who was the father of Sa’ied bin Zayd and the uncle of ‘Umar bin Al-Khattab. Quss bin Saa’edat in his famous address which he delivered in the Souq ‘Okaz( ), said: â€Å"O people! Listen and be conscious! Whoever lives would die, and whoever dies would be lost. Whoever be the newcomer would definitely show up. The night is dark and the day is calm and quiet. The heaven is holding the big stars, the stars are shining, and the seas are swelling up and surging. The mountains are toughening with the earth, which is flattened. The rivers are flowing along. In the heaven, there is definitely a message and on the earth, there is a lesson that which has to be taken into consideration. What about the people who passed, why don’t they comeback? Did they satisfied with where they stood and stayed therein? Or did they abandon so there they slept? He continued. He swore by the name of Allah, which is the legal swearing that Allah s religion (Islam) is the most satisfactory and most virtuous than your religion. You people are committing evil practices, he told the people then begun reciting poem: Among the earlier people who passed away- In the centuries, we have thoughtful lessons. When I have seen resources- For the nation, that has no origins. I have seen my people towards that- Walking both old and young The past will neither return to me- Nor of the rest bygone. I have ascertained by all means That I shall be wherewith the people have gone in the past. Zayd bin ‘Amr in his famous poem said: I have submitted my face to whom surrendered- Him the earth, which carries the heavy rocks He spread the earth, when He strengthened its tightening perfectly- Complete and He fixed the mountains on it firmly. I have submitted my face to whom surrendered- The rain clouds which carries sweet fresh- pure cold water. Thereupon, it was brought to a country- Which subservient to Him and poured on it with contest. Another ancient Arabian poet, (probably Umayyat bin Abi As-Salt), said: Only one Lord or thousand lords- Whom I should incriminate when the matters are distributed I have deserted Al-Lat and Al-‘Uzza (idols of Quraish pagans) completely- Likewise, the tolerant with endurance would follow. Moreover, a great number of thinkers and western intellectuals have led to the divine truth. They ultimately embraced Islam after their relentless search and contemplation for the true guidance. There is a research book titled â€Å"Allah Is More Manifest In Scientific Time, written by a group of 30 eminent scholars of astrophysics. Also there is another reference book entitled â€Å"Men Cannot Stand Alone† written by Chrisi Moreson, the chief of Science Academy in New York. This book was translated into Arabic under the title: â€Å"Science urges To the Divine Faith†. These books have commented saying that the true scholar should be a true believer. A commoner should also be a true believer. The mediocre type of scholars, who are less learned, should be an atheist and an unbeliever. In other words, such a scholar would be from among the little learned person. Therefore, he lost the natural inclination of true belief in the Islamic Monotheism while he never tries to reach to the knowledge that brings him to the true divine faith. Such mediocre type scholars should endeavor to search the knowledge for the true belief in order to achieve ultimate happiness in this life and the Hereafter. However, from all the above-mentioned evidences any rationale and sound mind reaches to a point that enables him/her to natural inclination for the acceptance of Oneness of Allah. Meantime, if anyone denies the above evidences, this means he/she still has to overcome weaknesses of his/her mind. It is because of the poor understanding he/she fails to comprehend the natural truth. What one poet has said is true in this regard! If your mind urges you to deny Him (i. . Allah’s unity)- Then reject your mind and its claim. This makes it obvious to a claim that the universe was created by coincidence or that the nature itself was a Creator, stands false. Raising such kind of claims and doubts only prove the arrogance and inflexibility of a mind which go counter to the soundness of brain and tends to deny the authenticity of the divine evidences. If anyone argues based on his/her assumption that the creation of this universe was just a coincidence then such a person should be asked: If the running of affairs of such a vast universe and its systematic sustenance is also coincidence? In this context, Wahiduddin Khan, an Indian Islamic scholar in his writings on the subject has quoted a statement of an American scholar Mr. Chrisi Morison, who challenged the creation of universe as being the coincidence. To substantiate his statement Morison narrated in detail the example of coins (Dirhams). He said take 10 Dirhams and mark them with numbers from one to 10. After marking, mix the coins by putting them into the pocket or a box. The next step he said is to pick the coins, one at a time, from the pocket or a box. Each coin so picked, he said should be in the numerical sequence, from one to 10. This means, in the first attempt the coin marked with number one should be picked followed by two, three and up to 10. He clarified saying that the numerical sequence is possible only when in the first attempt itself the coin marked with number one is picked and the rest in the similar order in different attempts. However, he challenged saying it is not possible to pick coins consecutively forming the sequence even after hundreds and thousands of attempts. The chances of success to pick the coins in numerical sequence are simply impossible, he noted saying even if attempts are made one after another and that is continued, might be for billions of times. On the analogy of this example, he said that how many attempts did it take, therefore, to create this universe even if it’s assumed that the creation of the universe is a coincidence? It is impossible to even imagine the computing of number of attempts each time a coin is picked to achieve the numerical order leave alone conceptualizing the idea. It would be a totally unrealistic counting, he noted.

Microsoft Essays (1139 words) - Monopoly, , Term Papers

Microsoft The current Microsoft antitrust case, still in progress as this review is being written, has been both hailed and condemned as the most important antitrust action of the coming century. Its potential significance has been compared to that of the Supreme Court's 1911 Standard Oil decision, which not only applied for the first time the trust-busting power latent in the Sherman Antitrust Act of 1890 to break up John D. Rockefeller's Standard Oil Company, but of at least equal importance enunciated the rule of reason on which judicial interpretation of the Sherman Act continues to be based. While none of this conference volume's contributors develops this comparison, readers may come away from the book feeling that it is apt.; As noted in Lenard's introduction and overview, there was general agreement among the conferees that the Microsoft case did not indicate any need for revision of existing antitrust laws. Yet the book identifies a paradox. Today's computer industry has so many eleme nts of natural monopoly--notably network effects and first-mover advantages--that the market will not work well if left to itself, yet it is far too complicated and fast moving to be regulated effectively. Antitrust is the only feasible policy option, but unless applied with skill and discretion, it may do more harm than good. In particular, consumer welfare is more likely to be enhanced by policy initiatives aimed at keeping the industry open to the introduction of major new technologies that might challenge the dominance of incumbents than by policies seeking to promote price competition among existing firms employing established technologies.; The paper by Michael L. Katz and Carl Shapiro discusses the fundamental economics of software markets, focusing, not surprisingly, on network effects, but also identifying and discussing the effects of the high set-up costs and low--even zero--marginal costs of software, the durability of software systems, and their rapid technological chan ge. This paper's treatment of network effects is sharply challenged in Timothy J. Muris' comment, which argues that network effects comprise a model for which very few, if any, valid empirical examples exist.; Janusz A. Ordover and Robert D. Willig confront the basic question of whether or not there is any role for antitrust in high-tech markets. After reviewing competing arguments, they conclude that antitrust may be crucial in protecting long-run competition in innovation and that this should be its primary objective. Their particular concern is with bottlenecks such as Microsoft's monopoly control of the operating system market, which is a crucial component of a broader system of computer use, including applications such as word processing and access to the Internet via browsers. They propose a three-pronged test to ascertain whether monopoly control of such a bottleneck exists and if so whether it is being used to exclude or restrain potential competitors from other markets in t he system: i.e., are short-run profits being sacrificed by exclusionary tactics in the hope of long-run recoupment through expansion of the initial monopoly to systemically related markets. In his comment, Lawrence J. White maintains that the antitrust problems raised by Microsoft's tactics are neither as new nor complex as Ordover and Willig suggest, but rather mirror one of the earliest issues in antitrust history--single railroad ownership and control of a bottleneck facility such as a monopolized stretch of track within a networked system of rail transportation.; Timothy F. Bresnahan utilizes an intriguing life cycle punctuated equilibrium model to analyze the nature of technological competition in the computer market. Monopolies such as Microsoft's monopoly of microcomputer operating systems and Intel's of microprocessor chips may arise from first mover advantages in introducing a major new innovation, from patenting of such a system, or from network dynamic economies of scale. Whatever its source, the monopoly may persist for over a decade--aeons in the PC business (p. 158) in Bresnahan's words. The monopolist will constantly be challenged by potential entrants and must keep abreast of minor technological improvements, but has overwhelming advantages in maintaining its position, including strategic entry barriers. This should not be of great concern to antitrust enforcers, as users' switching costs are likely to outweigh the advantages of adopting new products incompatible with previous ones. However, occasionally these periods of stability will be shattered by quantum improvements