Personal Financial Management

The concept of time value of money is associated primarily with such financial categories as the cost of the loan or the cost of equity. Hence, the main idea is that the money that is available now will worth more in the future due to the possible earning capacity. The principle which holds this concept is the interest that is earn on the invested amount. It is importance for the financial manager to understand the concept of the time value of the money in order to make and compare the investment alternatives and hence to solve the problem that ...