Different values of dollar in different circumstance

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Reference no: EM13971379

The Time Value of Money can be used to help determine the different values of a dollar in any different circumstance. For example, there are going to be times where we need to figure out what a product or piece of equipment will be worth in say 5 years. or how much your investment will be worth at a specified rate for a certain number of years. In either circumstance you will need to use one of the TVM ratios to determine the overall value. Being an analyst at a credit union or financial firm would call for you to be very knowledgeable with these ratios. Depending on what point you are trying to determine your investments value would determine whether you use future or present value of money. Both of the two tactics listed in the thread are good marketing strategies. Both would keep customers coming back, more specifically the 5$ off the next visit. The payments however could be thrown into a ratio and the present value could be determined to figure out exactly what they are saying is current face value.

Reference no: EM13971379

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