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Advertised rate and the annualized rate

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Reference no: EM13819887

Advanced Time Value of Money

An advertised monthly lending rate of 0.9% is about 11% per year. This difference between an advertised rate and the annualized rate is based on finer TVM details that may be overlooked by borrowers. Discuss how you may have used TVM in a recent investment or loan decision and explain some of the TVM details that may have been involved in your transaction.

If you have not used TVM in the past financial transactions what practical TVM application would you expect to encounter in your future. (I have never used TVM please focus discuss answer on this)

Reference no: EM13819887

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