Time Value of Money Activity

Time Value of Money Activity

For this activity, read the scenario and then use the provided Week 6 Time Value of Money Excel Template [XLSX] and Week 6 Time Value of Money Template [DOC] templates to complete your activity before uploading them to the submission area.

Note: There are locked cells in the Excel template. The cells have been locked to prevent the formulas from being disturbed. The cells that you will need to use to complete this assignment are not locked. You may create your own templates, however, it is recommended that you use the templates provided.

Note: Watch the Excel tutorial videos linked in this week to learn how to use Excel before attempting the assignment. You can use the template provided or you may create your own template based on the one provided.


Larry and Beth are both married, working adults. They both plan for retirement and consider the $6,000 annual contribution a must.

First, consider Beth’s savings. She began working at age 20 and began making an annual contribution to her IRA of $6,000 each year until age 32 (12 contributions). She then left full-time work to have children and be a stay-at-home mom. She left her IRA invested and plans to begin drawing from her IRA when she is 65.

Larry started contributing to his IRA at age 32. In the first 12 years of his working career, he used his discretionary income to buy a home, upgrade the family cars, take vacations, and pursue his golfing hobby. At age 32, he made his first $6,000 contribution to an IRA and contributed $6,000 every year up until age 65 (33 contributions). He plans to retire at age 65 and make withdrawals from his IRA.

Both IRA accounts grow at an 8 percent annual rate. Do not consider taxes or inflation.


  • Create a chart summarizing the details of the investment for both Larry and Beth.
  • Write a one-paragraph summary in which you explain the results in terms of the time value of money for both Larry and Beth. (Hint: discuss why one person was able to save a great deal more than the other.)

    ***This is a template. Please type over/delete all items in red prior to submitting your assignment.

    Week 6 Homework: Retirement Contribution Problem

    By Type Your Name Here

    FIN100: Principles of Finance

    Enter the Name of Your Instructor Here

    Type the Date Here (ex. February 10, 2020)

    Week 6 Homework: Retirement Contribution

    Instructions: In one paragraph, summarize the details of the investment for both Larry and Beth. Explain the results in terms of time value of money. Discuss why one person was able to save a great deal more than the other.

    *Use black, size 12, Times New Roman, Arial, Courier, or Calibri fonts. Double-space your paragraph. Use paragraph headers as necessary to express your results. See the formatting instructions and samples under the Strayer Writing Standards link in the Course Shell.



    No sources are required for this assignment, but if you include any research on retirement planning, please include your sources below.

    Sample formatting for an online source:

    1. Anya Kamenetz. July 10, 2015. The Writing Assignment That Changes Lives. https://www.npr.org/sections/ed/2015/07/10/419202925/the-writing-assignment-that-changes-lives

    Please provide your source list below:

    1. Website 1

    2. Website 2

    3. Website 3



    Week 8 Homework

    Finance 100 Week 6 – Time Value of Money Activity
    Please fill out the light blue fields.
    Your Name:
    Investor: Up to Age 32 Age 32 up to 65 Total FV
    Beth $0
    Larry $0
    Total Combined Value: $0
    NOTE: Explain the changes year-over-year for both Beth and Larry.
    What can you deduce from their investment habits and ultimately their investment outcomes.
    Use the Word document template to type your summary.
    Legend: Light blue fields can be edited
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *