Time Value of Money - Financial Management (FM)
Time Value of Money - TVM
The time value of money means money available at the present time is worth more than the same amount in the future due to its potential earning capacity.
Basic Time Value of Money
FV = Future value of money
PV = Present value of money
i = interest rate
n = number of compounding periods per year
t = number of years
Based on these variables, the formula for TVM is:
FV = PV x (1 + (i / n)) ^ (n x t)
Few of the basic terms used in time value of money calculations are:
Present Value
When a future payment or series of payments are discounted at the given rate of interest up to the present date to reflect the time value of money, the resulting value is called present value.
Future Value
Future value is amount that is obtained by enhancing the value of a present payment or a series of payments at the given rate of interest to reflect the time value of money.
Interest
Interest is charge against use of money paid by the borrower to the lender in addition to the actual money lent.
Application of Time Value of Money Principle
There are many applications of time value of money principle. For example, we can use it to compare the worth of cash flows occurring at different times in future, to find the present worth of a series of payments to be received periodically in future, to find the required amount of current investment that must be made at a given interest rate to generate a required future cash flow, etc.
🔴 Buy Now all Video Lectures - http://www.vijayadarsh.com
🔴 Join us on Facebook: https://www.facebook.com/VijayAdarshIndia
🔴 Join us on Google+: https://plus.google.com/u/0/+VIJAYADARSH
🔴 Website: http://www.vijayadarsh.com
🔴 E-mail: [email protected]
🔴 Contact: +91 9268373738 (Buy Now all Video Lectures)
About Video Lectures:
Video Lectures for Financial Management(FM) by Vijay Adarsh evolved as utility services for our own students. These are our classroom lectures which form a very good source of study material.
LEARN AT YOUR OWN TIME : OWN SPEED : OWN PLACE
StayLearning provides video lectures of Accountancy, Micro & Macro Economics, Mathematics, Income Tax, Corporate Accounting, Business Mathematics, Business Statistics, Cost Accounting, Financial Management (FM), for Class 9, 10, 11, 12, B.Com (Hons/Prog) – First Year (FY), Second Year (SY) and Third Year (TY), M.Com, MBA Examination by the best & renowned teachers.
The Lectures Covers in full depth, the description of all the involved concepts. Studying through lectures largely reduces the need of individual tuition. Lectures can be use at a pace which suits us. Students can pause and rewind the lectures according to their need. Complete practice tests and solutions of every topic would also be provided.
🔴 Visit Now : http://www.vijayadarsh.com
🔴 Contact: +91 9268373738 (Buy Now all Video Lectures)

© 2018 International currency exchange

Better Than Any Blockchain. Built on the most advanced blockchain technology that is scalable, secure and interoperates different networks. Growing Global Network. Banks, payment providers and digital asset exchanges process and provide liquidity for payments on RippleNet, creating new, competitive cross-border payments services for their customers. Buy Ripple. How to buy Ripple. The payment is easily completed online in minutes by POLi Payments a business from Australia Post and after payment is complete the coins will be sent to your CoinSpot online wallet immediately. Ripple is a technology that acts as both a cryptocurrency and a digital payment network for financial transactions. Ripple was released in 2012 and co-founded by Chris Larsen and Jed McCaleb. The coin for the cryptocurrency is premined and labeled XRP. Ripple Swell. Digital Copy. Bitcoin Dust.