Share
Explore BrainMass

Time Value of Money

Explain the concept of the time value of money. You will need to include and define/explain the concepts of "future value", annuities, present value, cash flows, compound interest and opportunity cost in your answer

Solution Preview

Time value of money is changes in the amount of money due to the time the money is used, the interest, and other costs. This time refers to the future value and the present value of money.

Future value is the amount an investment is worth after one or more periods (Ross, Westerfield, & Jordan, 2008). In other words, future value is the amount to which a ...

Solution Summary

This solution is comprised of detailed explanation to the following question:

Explain the concept of the time value of money. You will need to include and define/explain the concepts of "future value", annuities, present value, cash flows, compound interest and opportunity cost in your answer

$2.19