Professional Documents
Culture Documents
Time Value of Money
Time Value of Money
Instructor
Sukhwinder kaur
Overview
Time value of Money -Definition
• It is defined as individual preference for
possession of a given amount of money now,
rather than same amount at some future time.
• Reasons: i) Risk
ii) Preference for consumption
iii) Investment opportunities
Interest
Simple Interest
Simple Interest
Present Value and Future value
Compound interest
Compound Interest
Compound Interest
Compound Interest- PV and FV
Present value - Comparison