Friday, November 19, 2010
HBK Nirab: time value of money!!!
HBK Nirab: time value of money!!!: "The time value of money is the value of money figuring in a given amount of interest earned over a given amount of time for..."
time value of money!!!
The time value of money is the value of money figuring in a given amount of interest earned over a given amount of time
for example, 100 dollars of today's money invested for one year and earning 5 percent interest will be worth 105 dollars after one year.
Therefore, 100 dollars paid now or 105 dollars paid exactly one year from now both have the same value to the recipient who assumes 5 percent interest; using time value of money terminology, 100 dollars invested for one year at 5 percent interest has a future value of 105 dollars.
Goods u buy today with cost of Rs100 is priceless in up coming years.This dont mean the better new design r updated upcoming years.we save our money in Bank for some years on intrest but the same money if invested in up others quick finiancial then we sure know the value of money!!!
FOR MORE THIS POST IS TO BE EDITED AFTER I TAKE 6TH SEM CLASS N SHALL BE UPDATED ON THIS VERY SOON !!!!
for example, 100 dollars of today's money invested for one year and earning 5 percent interest will be worth 105 dollars after one year.
Therefore, 100 dollars paid now or 105 dollars paid exactly one year from now both have the same value to the recipient who assumes 5 percent interest; using time value of money terminology, 100 dollars invested for one year at 5 percent interest has a future value of 105 dollars.
Goods u buy today with cost of Rs100 is priceless in up coming years.This dont mean the better new design r updated upcoming years.we save our money in Bank for some years on intrest but the same money if invested in up others quick finiancial then we sure know the value of money!!!
FOR MORE THIS POST IS TO BE EDITED AFTER I TAKE 6TH SEM CLASS N SHALL BE UPDATED ON THIS VERY SOON !!!!
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