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This posting addresses the time value of money.

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Why does money have a time value? Can you provide at least one real-life scenario in which you can apply the concept of "time value of money?"

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The solution provides a discussion for the time value of money, and how it can be applied using a real-life example. References are also provided.

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Money has a time value because of the basic concept that a dollar does not hold the same level of value over time. This concept can be applied in all countries and to all currencies. A dollar today is not worth what it was ten years ago, and that same dollar today will not have the value that it now does, twenty years from now. Years ago, we could buy some products cheaper than we do now (gasoline), or years ago, we also paid ...

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