Q.1. Give some everyday life real examples of Time Value of Money? (Hint: Importance of Time
Value in business, personal life and investments)
Answers
Answer:
here you go (written by ashish chanchalani)
Explanation:
one day my papa go to shop buying 2 kg butter while mom said only 1
another day my mumma went shopping and bought soo many gehna worth 20,000
2 days later those gehna's found broken in dustbin
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written by fake ashish chanchalani
The time value of money -- the idea that money received in the present is more valuable than the same sum in the future because of its potential to be invested and earn interest -- is one of the founding principles of Western finance.
Let's say you lent your friend $2000. Would you rather he repaid you today, or tomorrow? The logical choice would be today, because you'll be able to use your money, and potential gains that come with it, sooner.
What Is the Time Value of Money?
Money is worth more more in the present than in the future because there's an opportunity cost to waiting for it. In addition to your loss of use if you don't get your hands on it right away, there's also inflation gradually eroding its value and purchasing power.