Time Value of Money
Finance is perhaps the most challenging course for students around the world. A part of why this course is so incredibly complicated is the topics you need to study and write exceptional papers on. One such topic happens to be the time value of money. It isn't unusual for students worldwide to seek the time value of money assignment help to them comprehend the topic and develop a profound knowledge of the complications associated with it.
But, the time value of money concept is one of the vital topics in the field. If you are not well-versed with the time value of money formula or example and still need to deliver exceptional solutions within a week, you have landed on the right page.
Here, you will not only find quality support but also can connect with our team of eminent 5000+ Ph.D. stalwarts. This team of reputed professors, researchers, and specialists in finance will write the paper for you. Nevertheless, you must also keep the following crucial to deliver a unique finance paper and secure high GPAs in the upcoming semester with ease.
What Is The Concept Of The Time Value Of Money?
Gain Crucial Insights From The Best In The Business
Trying to figure out what is the time value of money exactly? Find out all your answers right here
Time value of money or TVM is a fundamental financial concept, stating that the present value of the money is significantly higher than its future value, given its potential to earn in the years to come. In simple words, it suggests that a sum of money in hand is greater in value than the same sum of money that will be received in the next couple of years.
Let us look at an example to understand the concept of the time value of money better-
Suppose you are the lucky winner of a $2 million lottery, and you are presented with two choices. A lump-sum payment right now is worth $1 million or 10 annual payments of $100,000 (totaling $1 million over that time). This is excluding any tax ramifications; which is the better option?
TVM tells us choice one- the lump sum payment right now. This is best as it offers you the ability to put the money to work earning interest or growing via some other investment vehicle like stocks or real estate.
Are you facing difficulties in getting the hang of the time value of money? Reach out to us for the unmatched time value of money assignment help and quality support. We at MyAssignmenthelp.com have a team of 5000+ prolific experts worldwide with extensive knowledge in the field. Irrespective of the challenges you face, we will get on our toes to deliver a work filled with time value of money examples that stand second to none.
Hire An Experts
How to Describe Time Value of Money Formula?
Know the Essentials from the Experts to Score Well
We know putting together an effective task on topics like ‘time of the value of money in Islamic perspective or finance’ is perhaps the most intricate task out there. Things might turn out to be overly tricky for students who fail to get the hang of the requirements of the paper. Now that you are looking for a trustworthy website for unmatched time value, money, or traffic engineering assignment help, count on our expertise for well-crafted solutions.
Take a look at the time value of money equation you need to know to revamp your assignment game by notches-
FV= PV * (1+ i/n) n*t
PV= FV/ (1+ i/n) n*t
PV= Present value of money
FV= Future value of money
i= Rate of interest or present yield on similar investment
t= Number of years
n= Number of compounding periods of interest each year
The time value of money equation or time value of money real-life examples is something that your professors expect their students to be well-versed in. Hence, if you need more information on these topics, be sure to have a word with our team. Whether you need thorough explanations or just well-experienced time value of money assignment help stalwarts to write your paper, we have an eminent team at your disposal to assist you in the best possible ways.
What Is The Time Value of Money Example?
Numerous students come to us saying, 'I need someone to do my time value of money assignments when they cannot develop a profound knowledge of what is the time value of money in Islam. However, you can refrain from this situation from becoming a reality by opting for our quality time value of money assignment help services.
Here are certain crucial time value of money examples dished out by our stalwarts that you must know to comprehend the topic and strengthen your foundation in the subject like never before-
- Imagine Susan could earn 10% annual interest at her bank. And, imagine a friend of Susan owed her money. That friend offered to pay Susan back $1000 today or $1050 a year from today. Since Susan could have $1,100 next year if she had put that $1,000 in the bank on the present day, Susan can take the immediate repayment. The time value of $1050 in a year is less than $1000 today.
- You purchased a 1kg silver bar for $600 per gram 2 years ago. Today the market rate of silver is $400. This implies the silver bar you bought has lost its value.
- Again, assume that someone offers to pay you one of the two ways for some work you are doing for them. They will either pay you $1000 now or $1,100 one year from now. Which pay option will you take? It depends on the kinds of investment return you can earn on the money in the present time. $1,100 is 110% of $1000. If you think you can make more than a 10% return on the money by investing it over the next year, you should choose to take $1000 now.
On the other hand, if you don't think you could earn more than 9% in the next year by investing the money, you must take the future payment of $1,100.
Now, if you can still not comprehend the time value of money in the equation effectively, seeking the time value of money assignment help will be the wisest choice for your career. We also hold interactive study sessions to help students master the toughest syllabus portion of any topic associated with the subject step-by-step.
The Unique Features of Time Value Of Money Assignment Help
High grades are a certified guarantee when you avail our time value of money assignment help or get assignments on ‘rate of return’ or ‘time value of money in Islamic finance. So, drop all ‘I need assignments on ‘purchasing power’ or 'what is the time value of money requests at our chat portal and have immaculate solutions ready in no time at all.
And here are some more reasons to rejoice!
- Quality assistance of 5000+PhD experts
- Customizable packages at student-friendly prices
- Exciting discounts and attractive packages
- Quick turnaround
- Completely authentic solutions
- Seamless ordering process
- Unlimited reworks and revisions
- Round-the-clock customer support
- Free samples and plagiarism reports
Unlock your true potential with our informative time value of money assignment help services. Consult our professional stalwarts and showcase your brilliance to the world. Hurry to grab the offers and best deals.
Most Popular Questions Searched By Students
Q1. What is meant by the time value of money?
Ans. The time value of money is a core principle of finance. TVM, or the time value of money, implies that a sum of money is worth more now than the sum of the money at a future date due to its earnings potential in the interim. This is mainly because money today can be used, grown, or invested.
Q2. What are the 3 elements of the time value of money?
Ans. The 3 crucial elements to calculate the time value of money are principal, interest rate, and time.
Q3. What is the time value of money? Give Examples.
Ans. The time value of money implies the amount of money that you could earn between today and the time of a future payment. A remarkable example of a time value of money is- A wins a lottery of $1000 and has two options. Either A can take a lump sum right at the moment or receive the same after a year or two. The winner will choose the first option as the winner can invest the money and receive $1200 or more in the next two years.
However, on the other hand, if A chooses to go otherwise, it will be the same $1000 even after two years.
Q4. Why is TVM important?
Ans. The time value of money is important as it helps investors and people saving for their retirement figure out how to get the most out of their dollars. It helps them to comprehend the worth of money in relation to time. This concept is crucial to financial literacy and applies to your savings, investments, and purchasing power.
Q5. How do you calculate the time value?
Ans. The time value of money is evaluated with the help of the below-enlisted formula-
FV= PV * ( 1+ i/n) (n*t)
PV = FV/ (1+ i/n) (n*t)
PV= Present value of money
FV= Future value of money
i= Rate of interest or current yield on similar investment
t= no. of years
n= No. of compounding periods of interest each year