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Explain what the time value of money is

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Reference no: EM132813936

Please address one of the following topics. Please keep your responses brief and productive.

  1. Explain what the time value of money is and why it is so important in the field of finance.
  2. Explain the concept of future value, including the meaning of the terms principal, simple interest, and compound interest, and use the future value formula to make business decisions.
  3. Explain the concept of present value and how it relates to future value, and use the present value formula to make business decisions.
  4. Discuss why the concept of compounding is not restricted to money, and use the future value formula to calculate growth rates.

Reference no: EM132813936

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