Time Value of Money

Time Value of Money

Introduction

There is a time value of money. This mean; if a person has a cash in hand is favored over a cash that person is expecting to obtain at a point of time in the future. If the currency is postponed, it means that the consumption is also postponed. As a result, a person must have significant return in order to convince that person to delay his or her consumption today to utilize more in the future. It is done through getting a return over time, which is two forms, either interest or a ...