24.10. Key Takeaways for Tech Students

Try these first

1. 1.

   What does TVM stand for?

   Hint

   Think about the relationship between time and money.

2. 2.

   Why is financial literacy important for tech professionals?

   Hint

   Consider how technology projects require financing.

3. 3.

   What does the Time Value of Money imply?

   • Money loses value over time
   • Money today is worth more than the same amount in the future
   • Money is always worth the same amount over time

   Hint

   Consider how interest accumulation affects value.

4. 4.

   True or False: Future Value is the current worth of future cash flows.

   • True
   • False

   Hint

   Think about future earnings versus present value.

5. 5.

   You have ₹20,000 to invest at an interest rate of 8% for 4 years, compounded annually. What will be its future value?

   Hint

   Apply the FV formula to find out what the investment will grow to.

6. 6.

   A startup expects to receive ₹100,000 in 3 years from a major client. If the interest rate is 5%, what is its present value today?

   Hint

   You need to find out how much you should 'invest' today to receive the future amount.