Time Value of Money

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Title: Time Value of Money

Essay Details:

Subject: Miscellaneous

Author: Beverly M

Date: May 14, 2015

Level: University

Grade: A

Length: 3 / 832

Essay text:

Factors that might affect TVM like compound interest, present value, future value, opportunity costs, annuities, and the rule of 72 are important to understand when planning your financial future. Interest can be defined as either a fee that is charged by a lender for borrowed money or as a return upon an investment (Investorwords, 2007). Compounded interest occurs when an investment returns interest upon the initial investment and the interest accrued every period since the initial investment was made (Econedlink, 2007). The initial investment is often referred to as the present value. Present value is how much money a future payout on an investment is worth today, or at the time of the initial investment (Henderson, 2002)...

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