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 1 answerLast reply by: Professor Jibin ParkFri Aug 28, 2015 11:52 AMPost by Jim Tang on August 28, 2015what is a lump-sum of money?also, the challenge i think can be solved by nothing that 2^10 is about 1000, so 2^50 is about 10^15. but you have to move the decimal to the left two places, so around the order of 10^13. then, you can guesstimate.

### The Definition & Time Value of Money

• Money plays three roles: medium of exchange, store of value and unit of account
• Types of money include commodity money, commodity-backed money and fiat money
• Countries today use a fiat currency, which has no intrinsic value
• M1 money includes cash, money in checking accounts and traveler’s checks
• M2 money includes M1 money plus savings accounts, certificates of deposits and money market funds
• The time value equation is as follows: Future Value (FV) = Present Value (PV) x (1_r)n

### The Definition & Time Value of Money

Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.

• Intro 0:00
• Lesson Overview 0:21
• What is Money? 1:49
• Assets That Can Be Easily Used to Purchase Goods and Services
• Money in Savings Accounts, CDs or Money Market Accounts
• Roles of Money 5:37
• Medium of Exchange
• Store of Value
• Unit of Account
• Types of Money 9:56
• Commodity Money
• Commodity-Backed Money
• Fiat Money
• M1 and M2 16:29
• M1
• M2
• 2010 Facts
• A Penny Doubled 18:59
• Present vs. Future Value 20:26
• Formula
• Future Value
• Present Value
• Interest Rate
• Time Period of Investment
• \$0.01 = ????? 23:25
• Winning the Lottery Example 24:52
• Example 1 27:06
• Example 2 28:33
• Example 3 29:34
• Example 4 31:21