Time value of money?
1 answersQuestion asked ( August 19, 2009 , Shopping / Finance )
Has anyone ever understood the concept of time value of money? Every time, i read about it, the more i get confused. How different can a dollar today be to how it is tomorrow?
Answers to : money...
Answer
Hi. The concept of time value of money is more generic and applies to all walks of life that just finance. Time value of money states that the value of a dollar today is not the same as the value of a dollar five years from now. This effectively means that what you may be able to purchase with a dollar today, may not be available for the same dollar five years from now. This is because of value of money is impacted by external and macro economic factors such as inflation, economic conditions etc
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