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Article fin 3403 - Chapter 5 Time Value of Money Morgillo...

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Chapter 5, Time Value of Money Morgillo, Elaine (2010). Financially speaking; The time value of money. Seacoastonline.com. The article explored the time value of money, starting off asking the question, “Would you rather receive $500,000 today or $50,000 for the next 10 years?” Obviously, as stated in the article, it would be better to invest a lump sum of $500,000 with a five percent return which would yield a $315,000 profit rather than investing $50,000 annually with a five percent return which would only yield a $160,000 profit. Evidently this shows that the time value of money is a very important issue to take into account when trying to budget, invest, save your money. Questions like the one above arise everyday in the world of finance and it is very important to take all aspects into consideration. Questions like “Should one use their inheritance to pay off their credit cards?” or “Is it better to invest in a Certificate of Deposit of a Money Market account?” A lot of these decisions are not
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This note was uploaded on 06/05/2011 for the course BUS 101 taught by Professor T.mcgee during the Spring '08 term at FSU.

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Article fin 3403 - Chapter 5 Time Value of Money Morgillo...

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