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Factors That Affect the Time Value of Money
Essay specific features
Written by:
Oliver M
Date added:
July 29, 2015
Level:
University
Grade:
A
No of pages / words:
4 / 1042
Was viewed:
5721 times
Rating of current essay:
Essay content:
This paper will explain how annuities affect time value of money (TVM) problems and investment outcomes. In addition, this paper will briefly address the impact of interest rates, present value, future value, opportunity cost and the rule of 72 on the time value of money.
Annuities
An annuity is an evenly spaced number of payments or money received in the same amount (Cedar Spring Software, Inc...
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Each TVM problem has five variables: interest rate or return, time or number of periods, future value, present value, and amount of payments either made or received (Brealey, Myers, & Marcus, 2004). The present value of annuity payments received over a number of years is less than if one had the full amount in hand now to invest...
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