I must admit, I was a bit confused with this discussion board, I re-read the power point slides and chapters 4 and 5. I believe I figured it out, if not I would really appreciate your feedback and corrections to my DB.

What I so understand is that a future value problem is one where you know how much you will invest today, but want to figure out how much your investment will grow. When you are solving for future value there are two formulas that I know of so far, and those formulas include:

S i n g l e space P e r i o d space F u t u r e space V a l u e : space space space space space space space space F V subscript 1 equals P V cross times open parentheses 1 plus i close parentheses C o m p o u n d i n g space a n d space F u t u r e space V a l u e : space space space space space space space F V subscript N equals P V cross times open parentheses 1 plus i close parentheses to the power of N

What questions would you ask a mortgage lender if you used the Time Value of Money calculations to copare loan terms with what you "expect" to pay (or owe) based on your calculations.

I could think of two questions, off the top of my head, that I would ask the mortgage lender:

1. What is the annual interest rate?

2. What will my monthly mortgage payments be?

Thank you,

Ruby

Marcia C., Troy A., John N. (2016). M: Finance. 3rd ed. Retrieved from https://ambassadored.vitalsource.com/#/books/1259705625/cfi/6/22!/4/4/4@0:0

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