FIN 419 week 2 discussion question 2

May 19th, 2015
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What is the Time Value of Money? Why do you think that the Time Value of Money is important in finance? How can you apply the concept in your everyday life?. 150-175 word count

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Time Value of MoneyTime value of money is core theory of financial management that deals with calculations of the returns on investments and interest rates. The theory of time value of money states that the value of a particular amount of money a person has in the bank at the present time is always more than the expected value of same amount of money in the future [Lisa Maglof (2015)]. This theory directly relates to banking concepts such as interest rates, leasing procedures, dividend payments, and investment plans. This theory provides people a basic systematic platform to calculate the v

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