Want this question answered?
Seems to be lost. But why worry about a false statement. Consider instead. Time is more value than money. You can get more money, but you cannot get more time.
Inflation can erode the value of money over time.
(a) list various financial applications of the time value of money (b) Explain the components of a discount/ interest rate
because it earns intrest
Deflation is a decline in general price levels of goods and services and a stronger value in money.
Seems to be lost. But why worry about a false statement. Consider instead. Time is more value than money. You can get more money, but you cannot get more time.
The basic criticisms of the payback period method are that it does not measure the profitability of an investment and it does not consider the time value of money.
The time value of money is the increase in, or future/prjected value of, an amount of money, due to the implied interest earned on it over a period of time.
Inflation can erode the value of money over time.
Time value of money concepts dictates that amount recieved today is not equal to amount receivable at some future time and some amount sometimes interest which is the value of time involved with that money.
The time value of money is irrelevant to purchases paid in full. Money's time value is related to how long it takes to pay off a mortgage or a credit card.
Time, is Money
cost, time and quality
The disadvantages of time value of money are not knowing the interest rates or growth projections of money. It is impossible to forecast accurately inflation rates.
www.grb.net
There is no specific value. Wasting time or using it inefficiently can cost money, but the amount depends on the type and size of the operation.
(a) list various financial applications of the time value of money (b) Explain the components of a discount/ interest rate