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The Time Value of Money
Introduction to the Time Value of Money
Finance Textbooks Boundless Finance The Time Value of Money Introduction to the Time Value of Money
Finance Textbooks Boundless Finance The Time Value of Money
Finance Textbooks Boundless Finance
Finance Textbooks
Finance
Concept Version 11
Created by Boundless

Importance of the Time Value of Money

Compound Interest

Compound Interest

In this formula, your deposit ($100) is PV, i is the interest rate (5% for Bank 1, 6% for Bank 2), t is time (5 years), and FV is the future value.

Source

    Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:

    "Future value."
    http://en.wikipedia.org/wiki/Future_value Wikipedia GNU FDL.

Related Terms

  • discounting
  • interest rate
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