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Time Value Of Money 9

Time Value of Money

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Title: Time Value of Money

Essay Details:

Subject: Business

Author: Enola D

Date: March 28, 2014

Level: University

Grade: A

Length: 4 / 981

Essay text:

This is because interest can be earned on a dollar received today. The money today can be invested to earn interest and therefore will be worth more in the future. Time value of money (TVM) is the process of calculating the value of an asset in the past, present, or future (Brealey, Myers, & Marcus, 2007, 89). This paper will briefly address how annuities affect TVM and investment outcomes, the impact of interest rates and compounding, present value, future value, opportunity cost, and the rule of 72 on the time value of money. Annuities The term annuity is used in finance theory to refer to any terminating stream of fixed payments over a specified period of time...

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