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This paper discusses the time value of money with specific attention to three areas: present value, future value, and future-value annuity. The paper further discusses discount and interest rates.
Time Value of Money
The time value of money concept implies that if you have a preference of collecting certain amount of money today or at a future date from now, the money you should anticipate at a future date from now should be in greater amount than the collectable amount today. This concept also means that dollar collected today is valued more than future dollar because one can begin to earn interest immediately...
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