Effects of time value of money concepts

Reference no: EM1327980

1. What does the time value of money mean? Why is this concept important in accounting? Under what circumstances would we use the time value of money calculations?

2. When might we use present value calculations? When might we use future value calculations? Which is more likely to be used in accounting? Why?

3. What effect do interest rates have on the calculation of future and present value? How does the length of time affect future and present value? How do these two factors correlate?

Reference no: EM1327980

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