Essay Available:
Pages:
1 pages/≈275 words
Sources:
-1
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.68
Topic:
Time Value of Money (TVM)
Essay Instructions:
Instructions
Explain why money has a time value. Explain how the time value of money (TVM) might possibly impact your life now or in the future. Give an example, from your own experiences if possible, to support your explanation.
Your entry must be at least 200 words in length. No references or citations are necessary.
Essay Sample Content Preview:
Time Value of Money (TVM)
Name of Student
Institution Affiliation
Time Value of Money (TVM)
Money has a time value because a sum of money now is worth much more than the same amount in the foreseeable future due to its current earning potential. Time Value of Money is a core finance principle, and it is sometimes called present discounted value. A specific sum of money is currently more valuable than in the future because investment can increase its value. When an individual delays or fails to invest, he loses an opportunity, and the money`s value depreciates due to factors like inflation. In summary, investing money now increases its worth in the future by evading inflation. Hence, when computing TVM, the formula considers the sum of money, the potential amount it can earn to determine its future value, and the period. Similarly, to increase money`s value in the future, one can opt to deposit it in a savings account, and the number of compounding periods will determine its value.
The time value of money has...
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