Future Value of a Series of Cash Flow is used to determine the total worth of continuous cash flow of some years at a prevalent rate of interest. In simple words, it is the total return to be obtained after the maturit…
Showing posts with label Time value of money. Show all posts
Showing posts with label Time value of money. Show all posts
Friday, April 17, 2020
The present value of a series of cash flow is used to obtain the initial/current worth of a series of cash flow to be invested for some years at a prevalent rate of interest. In other words, it is the amount required t…
Wednesday, April 15, 2020
The future value of a single cash flow implies that how much will be worth of money after a few years if it is invested today at a prevalent rate of interest. E.g.: What will be the return on the maturity of a bank FD o…
The present value of single cash flow is used to determine the lumpsum investment requires to be done today at a certain rate of interest to meet certain expenses in a future date. E.g. investing in bank FD today to me…
Sunday, April 12, 2020
Time value of money is the fundamental concept of Investment and Finance. It is the basic concept that says that money has different values over the different point of time e.g. a money today may be worth more than it i…
