# Time value of money examples and explanations

Looking for examples and explanations of common financial formulas like

- time value of money

-future value annuity

-present value of annuity

-IRR

https://brainmass.com/business/capital-budgeting/time-value-money-examples-explanations-392545

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Looking for examples and explanations of common financial formulas like

- time value of money

-future value annuity

-present value of annuity

-IRR

Time value of money

As per finance professor, "The basic idea of time value of money is that a dollar today is worth more than a dollar tomorrow. That is you would rather have a dollar now than later, BUT would rather pay later if possible."

A bird in hand is better than two in bush; hence time value of money concept reflects the power of money. One can earn interest on the money which leads to preference towards money. One can earn ...

#### Solution Summary

Solution explains time value of money