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Essay specific features
Written by:
Amanda J
Date added:
October 14, 2011
Level:
University
Grade:
A
No of pages / words:
5 / 1314
Was viewed:
6078 times
Rating of current essay:
Essay content:
For example, assuming a 5% interest rate, $100 invested
today will be worth $105 in one year ($100 multiplied by 1.05). Conversely, $100
received one year from now is only worth $95.24 today ($100 divided by 1.05), assuming
a 5% interest rate.
Relationship determined by the mathematics of Compound Interest between the
value of a sum of money at one point in time and its value at another point in time...
displayed 300 characters
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Time
value of money can be illustrated by the fact that a dollar received today is worth more
than a dollar received a year from now because today's dollar can be invested and earn
interest as the year elapses. Implicit in any consideration of time value of money are the
rate of interest and the period of compounding...
displayed 300 characters
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