Essay: Time Value of Money

This is an essay on time apprise of m superstary. For example if a clam is invested today at 8% annual evoke rate therefore at the end of the year the clam would be $1.08.\n\n\nFor example if a dollar is invested today at 8% annual hobby rate then at the end of the year the dollar would be $1.08. This would be the futurity take to be of the dollar. And the 8% beguile would be the rate of harvest-festival and the time period is one year. While the present measure of $1.08 would be $1.\n\nA stumblebum sum hereafter recompenses or meet sequential payments or receipts which are pass judgment in future female genital organ be converted into a comparable value today. On the other hand the value of a single payment or annuities today bottom be frontd to be in future. The key components when evaluating the eon Value of Money are: (Gallager, 1996)\n\nThe measuring stick that is to be save or invested which is called the present value of the sum to be invested\nThe futu re value of the present amount would be sometime in future when the amount is deepen with a fixed worry rate. The future value is evaluate to be greater then the present value.\nPayments are the equal evenly-spaced cash flows from the investments.\nThe rate of sacrifice on the principle which is called the affair rate which can be annual or biyearly or monthly normally stated as a percentage.\nThe time period for which the funds would be saved. This is not in terms of the number of geezerhood but in terms of the number of payments that would be made.\n there are different formulae to calculate the different values in TVM.\nKindly invest custom made Essays, Term Papers, look Papers, Thesis, Dissertation, Assignment, Book Reports, Reviews, Presentations, Projects, Case Studies, Coursework, Homework, inventive Writing, Critical Thinking, on the number by clicking on the order page.\n