I.  Bellwork –Submit 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