Capital Market Question: Download Capital Market PDF
What is time value of money? What are the techniques used for this?
Answer:
Time value of money is the value which is earned over a given amount of time in terms of interest. For example if Rs. 200 money will be invested for about 1 year then the earning will be of 5% interest which will be worth 205 after one year. So using this time value of money terminology the future value can be predicted.
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