Introduction of the term time value of money
Give a brief introduction of the term time value of money? What are the methods employed for this?
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Time value of money is the value that is collected over a given amount of time in terms of interest. For instance if Rs. 200 money will be invested for on one year then the earning will be of 5% interest which will be worth 205 after one year. So employing this time value of money expressions the prospect value can be predicted.
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