Time Value of Money, or TMV, is the recognition that money earns interest over time. When making an investment, one must consider the present value, the value of an investment today, and the future value, the value of an investment at the end of a specific time frame. In this case, we are looking at saving for retirement, so we need to determine how much to save annually to end with a specified future value. Budgeting for retirement is an example of capital budgeting in which an organization plans to invest in long-term assets in a way that returns the most profitability to the company, or in this case ourselves. I am 20 years old, so I am looking to save $500,000 by the time I am 70 years old. At age 70, this money can be taken out in a lump some, which indicates that we need to find out the present value instead of the present value of an annuity, which is a stream of equal cash payments made at equal time intervals. We are given the future value of the investment, so we need to find the present value of the investment to determine annual savings. What