Submitted by InfoQueenReg on January 7, 2008

• Category: Business
• Words: 1451
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Time Value Of Money

Introduction

Money is an essential part of our lives; therefore, it is imperative to understand how factors such as time, discount, and interest rates affect its value. For example, understanding the effective rate on a business loan, the mortgage payment in a real estate transaction, or the true return on an investment depends on understanding the time value of money, (Block & Hirt, 2005). This paper discusses the time value of money with specific attention to three areas: present value, future value, and future-value annuity. The paper further discusses discount and interest rates.

Time Value of Money
The time value of money concept implies...

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