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Unformatted text preview: Discussion Question(s) #3 Please reply to this thread by or before Sunday, day 6 with your answers! How would you explain the use of time value of money (TVM) in business? What considerations are made when calculating TVM? How can you use TVM to create your own, or someone elses, retirement plan? How would you explain the use of time value of money (TVM) in business? Time Value of Money (TVM) is a means of determining the value of money across spans of time at given interest rates. It is a tool to help individuals or businesses equate dollars in hand with future money. This equation assists in the evaluation of investment opportunities or other problems or comparisons between the value of money at one point in time and the value of money at some other point in time. What considerations are made when calculating TVM? TVM is calculated based on a few factors. Generally, one must consider a given present or future value of money, an interest rate expressed as a percentage or ratio over a specified unit of time,...
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This note was uploaded on 02/21/2011 for the course FIN 370 taught by Professor Unknown during the Spring '08 term at University of Phoenix.
- Spring '08
- Time Value Of Money