You recently attended a seminar on "Investment and Time value of money" organised by your employer, the state commercial bank of Mauritius.

The resource persons emphasised on the importance on convincing each and every bank customer who visits the branches of the bank to place their savings in one of the many investment schemes introduced by the bank rather than keeping them at home.

Another resource person put emphasis on placing their trust in the bank to invest their money as the bank has a strong team of specialist investors who have been performing highly over the past years.

Another resource person used facts and figures from the business world to convince the audience that the State Bank of Mauritius is better placed to offer interesting alternatives to savings accounts and fixed deposits traditionally used over centuries to increase wealth of individuals.

The President of the State Bank declared that the time has come for the bank to play a more dynamic role and to help the country during this COVID 19 crisis period.

Your manager has requested you to prepare a special paper to be presented to the Board on the schemes proposed during the seminar.

Your attention has been drawn to the fact that not all members of the board are from the finance world.

Your manager has advised you to keep the language simple and to include the following issues for ease of better understanding:

1. Factors influencing the value of money. 2. Present value of future cash flows. 3. Annuities and the future value of an annuity. 4. Annual Percentage Rate (APR) & Effective Annual Rate (EAR).