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Time Value of Money
Essay specific features
Written by:
Ronald C
Date added:
May 29, 2017
Level:
University
Grade:
B
No of pages / words:
5 / 1355
Was viewed:
9203 times
Rating of current essay:
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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