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Q1 : What is the time value of money? And What are the four basic value equation part? _______ Please see the sample answer for

Q1 : What is the time value of money? And What are the four basic value equation part?

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The Time Value of Money (TVM) is the idea that, because of its potential earning capacity, the money you now have is worth more than the same amount in the future. This core principle of finance holds that provided money can earn Interest, any amount of money worth more the sooner it is receive :Present Value it is the process of calculating the value of a financial flow in the future now and is calculated by the equation PV=A/(1+r)^{n} PY=A*1/(1+rWin) D.F=1/(1+r)^{n}. PV-A D.F. Future Value And it is the process of calculating how much a person will get the invests a certain amount on a certain compound interest rate and it is calculated as follows FV=A*(1- FV-A1/D

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