Purchase Solution

How is a car loan an example of TVM?

Not what you're looking for?

Ask Custom Question

How is a car loan an example of TVM? Under what circumstances should an individual take out a loan versus pay all cash? How have recent zero $ down and zero $ interest for 12 months affected potential cash buyers?

Purchase this Solution

Solution Summary

This solution explains the concept of Time Value of Money (TVM) and justifies the choice in taking out a loan or paying it all in cash with respect to interest and potential cash buyers.

Solution Preview

Time Value of Money is the value derived from the use of money over time as a result of investment and reinvestment. A loan taken for car today will help me buy the car today itself, instead of having to wait for couple of years to save all the money required to make the purchase all at once. Even though I will have to make some down ...

Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking