EAR Annuities and Loan Management
An important concept in finance is time value of money which means that cash received at different times has different values. A dollar today is worth more than the same dollar tomorrow. Time value of money refers to the fact that the same money return has a higher present value if it is to be received early that it is to be received later. Time value of money means that the value of a sum of money received today is more than its value received after some time. Conversely, the sum of money received in future is less valuable in the future.
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