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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.
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.
You should not value money very much. It can take hold of your life and you will worry all the time. I value money on a very small scale. And I think you should too.
"In the Money" is a term used in option trading as a determinate to if an option has "Intrinsic Value." In the Money, does NOT mean in profit. There are two components to an option value, TIME VALUE, and INTRINSIC VALUE. Time Value + Intrinsic Value = Option Premium. When the market price is above the option strike price of a CALL option, that option is considered "In the Money" i.e. having intrinsic value. When the market price is below the option strike price of a PUT option, that option is considered "In the Money" i.e. having intrinsic value.
Over the years, money either rises in value or lowers. Like in the 1910's, 59 bucks was like 400 bucks today!
The nouns in the sentence are value and time.
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
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.
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.
The value will deprecate with time.
(a) list various financial applications of the time value of money (b) Explain the components of a discount/ interest rate
The concept of time value of money is used to compare the investment alternatives. The concept of money is also used to solve the problems that involves mortgages, leases and annuities.
You should not value money very much. It can take hold of your life and you will worry all the time. I value money on a very small scale. And I think you should too.