Explain the concept of time value of money

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1. Explain the concept of the Time Value of Money (TVM). Based on the TVM, why is "money today" worth more than "money tomorrow"? Please explain.

2. An annuity makes 10 equal annual payments of $2000. the first payment begins in exactly 5 years. if the relevant discount (interest) rate of 10%, what is the present value (today) of the annuity?

Reference no: EM131904065

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