$$Explain the difference between present value and future value with examples.$$

$$Calculate the future value of $$1,000$ invested for $5$ years at an annual interest rate of $6\%.$

$$

Scenario Exploration:

$$

$$What happens to the present value of a lump sum if the discount rate increases? Provide a detailed explanation.$$

$$Create a real$-$world example where calculating the future value of an investment would be important.$$

$$

Real$-$Life Applications:

$$

$$Suggest three situations in personal finance where the time value of money is critical.$$

$$Explain how the time value of money is used in deciding whether to take a lump$-$sum lottery payout or an annuity.$$

$$

Tips and Tricks:$$

$$

Be specific in your prompts to get targeted answers. For example, instead of asking, $$What is TVM$?$ try $$Explain TVM using an example of a car loan.$$

Experiment with creative scenarios by asking, $$How would TVM apply to evaluating a long$-$term investment in renewable energy projects?$$