Asked by
giuliana zuniga
on Dec 02, 2024
Verified
If money has a time value, then the future value of an investment will always be more than the original amount invested and the present value of an investment will always be less than the anticipated future sum of money.
Time Value
The principle that money in hand today has a greater value than an identical sum received in the future because of its ability to earn more over time.
Investment
The process of distributing funds with the aim of earning an income or a profit.
Future Value
The value of an investment at a specified date in the future, factoring in variables like capital growth and interest rates.
- Acquire knowledge on the fundamentals of the time value of money.
- Gain an understanding of the numerical methods utilized in evaluating the immediate and future financial value of investments.
Verified Answer
NS
Learning Objectives
- Acquire knowledge on the fundamentals of the time value of money.
- Gain an understanding of the numerical methods utilized in evaluating the immediate and future financial value of investments.