Archive about 'Time Value Of Money'
Tweet What Is Present Value Of Money? In the earlier articles, we have understood the time value of money, compounding interest to get the future value of money, we now need to understand what is the present value of money. Simply, the present value is the amount that must be invested NOW to reach a [...]
Tweet What do we mean by Future Value Of Money? The future value is merely the amount an investment would grow to if it accumulates interest at a certain interest rate COMPOUNDED over the terms of the investment. To understand the future value of money, we need to understand compound interest. For example, if we [...]
Tweet What do we mean by Time Value Of Money? In simple terms, a dollar in hand TODAY is worth more than when you supposed to received say ONE YEAR from today. Is it important to understand this Time Value Of Money concept? It is definitely important to understand especially when an entity start investing [...]