Essay specific features
November 15, 2013
No of pages / words:
4 / 888
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Present Value: the amount required to make an investor indifferent between a sum today and another larger sum in the future.
Future Value: the amount required in the future to make the investor indifferent between that sum and a smaller sum today. Annuities are equal payments spread over time, and these can be valued in relation to lump sums today (present value) or at some future time (future value)...
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Annuities are equal payments spread over time, and these can be valued in relation to lump sums today (present value) or at some future time (future value).
The most important concept about understanding any investment is the time value of money. Invested money increases in value over time because of the growth generated from the use of production factors such as machines, land and labor...
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