Describe newly-acquired knowledge of tvm calculations

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Question: Most of us intuitively understand that a dollar required today does not have the same value as a dollar needed (or utilized) in the future due to several factors including interest rates, compounding factors, discounting factors and financial risk.

- Give an example of a purchase or transaction you have executed in your personal life which illustrates the time value of money (i.e., purchasing your first car, or home, for example).

- How could your newly-acquired knowledge of TVM calculations better prepare you for the next negotiation or big-ticket purchase in your life?

Reference no: EM132758567

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