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Essay

Time Value of Money

Essay specific features

 

Issue:

Business

 

Written by:

Ronald C

 

Date added:

May 29, 2017

 

Level:

University

 

Grade:

B

 

No of pages / words:

5 / 1355

 

Was viewed:

9200 times

 

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Essay content:

This paper will explain how annuities affect time value of money (TVM) and investment outcomes. In addition, this paper will briefly address the impact of discount and interest rates, present value, future value, opportunity cost and the impact interest has on money being borrowed. Time Value of Money Present Value is an amount today that is equivalent to a future payment or series of payments that has been discounted by an appropriate interest rate...
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The future amount can be a single sum that will be received at the end of the last period, as a series of equally spaced payments (an annuity), or both. Since money has time value, the present value of a promised future amount is worth less the longer you have to wait to receive it. (Gallager&Andrew, 1996)...
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