AHRM 2304 Lecture Notes - Lecture 3: Progressive Tax, Internal Revenue Service, Standard Deduction

• School: Virginia Tech
• Department: Apparel, Housing, and Resource Management
• Course: AHRM 2304
• Professor: Solis

Document Summary

Document used to record both planned and actual income and expenditures over a period of time. Rules for successful budgeting: keep it simple, make it personal, keep it flexible, be positive. Think of it as a spending plan casting vision on where you want your money to go that month. This question asks for a present value. You will be given 4 pieces and need to find the 5th piece in all tvm problems. What is the value in the future of money you invest today: example: calculate the future value of invested for 10 years assuming an annual interest rate of 12%. Pv=-1000 (negative because it"s an outflow invested money) Present value : pv= (fv)/((1+i)^n, example: calculate the present value of to be received in 10 years assuming an annual interest rate of 12% A dollar today is worth more than a dollar in the future.