The concept of time value of money has several “real-world” applications.
Time value of money
The concept of time value of money has several “real-world” applications. Some of the applications range from calculating the payment for a car or mortgage to estimating what interest rate is needed on an investment to send your child to college in 20 years.
1) Do you believe the concept of time value money is important in ordinary business relationships? Explain.
2) How would you use a concept of time value to determine the value of the business?
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