1. Atita plans to gift $150,000 to her daughters as a gift in the future. She thinks it will help her daughter fulfil her dreams when she reaches her age to marry.

Assume her daughter is 3 years old and may get married in her 20s. Assume that Atita has $30,000 and wishes to invest that in a financial asset with a 9% rate of return per annum.

Required:

How would you define the amount of $30 000 and $150 000 in terms of the time value of money?How long will she have to wait until she reaches the goal of $150 000?

Answer rating: 100% (QA)

The time value of money refers to the concept that the value of money changes over time due to facto... View the full answer