 | Chapter Concepts
(See related pages)
- Money has a time value associated with it and therefore a dollar received today is worth more than a dollar to be received in the future.
- The future value and present value of a dollar are based on the number of periods involved and the going interest rate.
- Tables for future value and present value can be applied to any problem to ease the analysis.
- Not only can future value and present value be computed, but other factors such as yield (rate of return) can be determined as well.
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