CSU Time Value of Money Journal
Question Description
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I’m working on a management writing question and need the explanation and answer to help me learn.
Assume that your aunt recently gifted you $12,000. You are both excited and worried about what to do with the money. You evaluated your options and came up with five possible uses:
pay off credit card debt,
set aside money for a major investment, such as a car or house,
- invest the money in a retirement account,
- use the money for career training/education, or
- donate funds to a charitable organization that serves the needy within the community.
- Which option would you choose? Go through each option and explain how the time value of money concept affects each option. How does the time value of money concept play a part in your final decision about the use of the $12,000 gift? Explain.
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