Asked by Luciana Joseph on Jul 08, 2024
Verified
Give two examples of advertisements or news items that routinely ignore the time value of money.
Time Value
The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.
Money
A medium of exchange that facilitates the transfer of goods and services, traditionally in the form of coins and banknotes, but also digitally.
- Critically analyze real-life financial news and advertisements for their acknowledgment of the time value of money.
Verified Answer
KM
katrease matthewsJul 13, 2024
Final Answer :
(1) Statements of the "value" of long-term contracts of professional athletes.
(2) Estimates of the "value" of politicians' pensions plan.
(3) Comparisons between the cost of a public project today and the amount it would have cost x years ago.
(4) Announcements by politicians of the total "value" of new program spending projected over a number of years.
(5) Comparisons between the total premiums paid on permanent life insurance contracts and the amount of the death benefit.
(2) Estimates of the "value" of politicians' pensions plan.
(3) Comparisons between the cost of a public project today and the amount it would have cost x years ago.
(4) Announcements by politicians of the total "value" of new program spending projected over a number of years.
(5) Comparisons between the total premiums paid on permanent life insurance contracts and the amount of the death benefit.
Learning Objectives
- Critically analyze real-life financial news and advertisements for their acknowledgment of the time value of money.