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What is Understanding Time Value of Money about?

Money today is worth more than the same amount in the future due to three main factors: 1) Money today can be invested and earn returns, growing the amount over time. 2) There is risk that future money may not be received. 3) Inflation decreases the future purchasing power of money. The time value of money concept is important for both individuals and businesses making investment and financial decisions that involve present versus future monetary amounts.

Author

John James

Language

EN