About the value of money, Unit 5 introduces you to (TVM)

About the value of money

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Reference no: EM131608336

Unit 5 introduces you to (TVM) the Time Value of Money. Most of us intuitively understand that a dollar required today does not have the same value as a dollar needed (or utilized) in the future due to several factors including interest rates, compounding factors, discounting factors and financial risk. Give an example of a purchase or transaction you have executed in your personally life which illustrates the time value of money (i.e., purchasing your first car, or home, for example). How could your newly acquired knowledge of TVM calculations better prepare you for the next negotiation or big-ticket purchase in your life?

Reference no: EM131608336

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