Social Sciences, asked by benjamin490, 1 year ago

Importance of time value of money in financial decision making

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Answered by Anonymous

Answer:

The time value of money (TVM) is an important concept to investors because a dollar on hand today is worth more than a dollar promised in the future. The dollar on hand today can be used to invest and earn interest or capital gains.

TVM can be broken up into two areas: present value and future value.

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