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Time Value of Money Problems


Assignment help for Time Value of Money Problems

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Example of time value of money for solving assignment

Let us take an example straight away to understand the concept of time value of money assignment help.

Amount Invested = 50 dollars (current value)

Rate of Interest = 10 per cent

So 50 dollars invested today will become 55 dollars exactly one year from now, and both have the same value to the recipient who assumes 10 per cent interest. In terms of time value of money assignment help we can say that 50 dollars today is equivalent to 55 dollars after a year.

We can go in the opposite direction as well. Amount of 105 dollars can be discounted to calculate the present value.

It involves basic mathematics and algebra to calculate the time value of money. We discount the future value equivalent to the time value of money assignment help.

PV = FV - r*PV = FV/(1+r).

Here PV is the present value and FV is the future value and r is the rate of interest.(1+r) in the denominator is called the discounting factor in time value of money concept.


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