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Essay

Monetary Policy Analysis

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Mark G

 

Date added:

July 5, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 746

 

Was viewed:

9988 times

 

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Essay content:

Neal Freeman emphasizes, the "time value of money". This is known to be one of the basic principles of finance, for with the concept of the time value of money, today's dollar will be worth more that a dollar received in the future. (Freeman, 2000) The monetary policy affect's ones investments, for when investing one's money it is important the understand the time value, define the value, and understand the capital budgeting so that one would be able to decide whether or not the investment should be made...
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The present value is the worth of today's dollar, and the future value is the worth of the sum projected in the future. As one defines the future value, he or she will have to determine the amount of interest being made. If the investment entails interest compounding, then "interest is assumed to be calculated not only on principal, but also on all previously accumulated interest...
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