AP Macro 3/26/2020

I.  BellworkSubmit of Google Classroom

  • 24.1 on iLearn Q&A

II.  Objectives:

  • Explain why a dollar today is worth more than a dollar a year from now
  • Use the concept of present value to make decisions about costs and benefits that come in the future

III.  Discussion:  Time Value of Money- Macroeconomics 4.3

A.  The Concept of Present Value

  1. Borrowing, Lending, and Interest
  2. Defining Present Value
  3. Using Present Value  PV = FV/(1+i)N
  • B.  Present Value  = Future Value/(1+interest rate)Years

     4. Using Future Value

  • FV = PV x (1 + i)N

IV.  Classwork: on iLearn

  • 24.2 Show formulas & Work – Submit on Google Classroom
  • on iLearn Module 24 Questions

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