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**What is Time Value of Money?**

Time Value of Money refers to the concept that receiving a particular amount of money in the present moment, rather than receiving the same amount of money later in the future time, is a better option or more profitable choice.

This is because of the potential earning capacity of money that it can earn interest. So, the sooner money is received, the more is its worth. This concept is discussed in details in each and every one of our **Time Value of Money Homework Help** services.

**Factors that you should know:**

**Present value:**

When discount is given to a series of payment or any amount of future payment, the value of the resulting amount is known as present value. The discount is given up to the present date, at a particular rate of interest.

**Future value:**

In order to show the time value of money, when the value of the present series of payments is a particular payment is enhanced at a particular rate of interest, this increased amount of money is known as future value.

**Interest:**

It is the amount of money that the borrower pays to the lender, in addition to the amount of money that is borrowed, as against the total amount.

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**Application of Time Value of Money:**

The uses of Time Value of Money are multiple and they must be known to the student. We give a complete idea of these applications, through our** Time Value of Money Homework Help** services.

- To find the present value of payments
- To compare the value of cash flows
- To generate future cash flow
- To find the required amount of current investment.

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