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Time Value of Money Application

Will you highlight some of the key components of Time Vlue of Money (TVM). Also will you identify at least one financial application of TVM employed by commercial banks, credit card financial services companies, insurance companies, state governments-lotteries and retirement plan financial service providers.

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Will you highlight some of the key components of Time Value of Money (TVM). Also will you identify at least one financial application of TVM employed by commercial banks, credit card financial services companies, insurance companies, state governments-lotteries and retirement plan financial service providers.

Time value of money is due to individual's preference for possession of a given amount of money now, rather than the same amount at some future time.
Before making any investment decision, one of the key elements you face is working out the real rate of return on your investment.
Financial application by Banks
Bank provides interest on the deposits held by it. They may give interest on the basis of either simple interest or compound interest. Simple interest is interest on the principle amount while compound interest is when your principle and any earned interest earned interest. The ...

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Will you highlight some of the key components of Time Vlue of Money (TVM). Also will you identify at least one financial application of TVM employed by commercial banks, credit card financial services companies, insurance companies, state governments-lotteries and retirement plan financial service providers.

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