Time Value Of Money Assignment Help

Improve your Grades in Finance with Time Value Of Money Assignment Help

The value of money fluctuates throughout time. Because the value of a dollar in hand today is greater than the value of a dollar earned a year from now, if you have a $1 in hand today, you will spend it someplace and profit from it. If left alone, an investment placed today will grow at a set or variable rate in the future. How do we know how important that investment will be at a specific moment in the future? This type of question also arises when considering the value of money over time.

The idea behind the time value of money is that money accessible now is worth more than money available in the future due to its potential earning ability. This central finance theory states that if money can earn interest, the sooner it is earned, the more valuable it is. It states that the purchasing power of money will fluctuate throughout time. For example, if you invest $100 for a year at 6% annual interest, you will receive $106 at the end of the year. With a 6-percentage-point interest rate and a one-year maturity, the dollar's potential worth is $106. As a result, only $100 is the current worth of $106, which you expect to receive in the future.

Value Of Money Assignment Help

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