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Single sum problems - PowerPoint PPT Presentation

The Time Value of Money

The Time Value of Money. Compounding and Discounting Single Sums. Today. Future. We know that receiving $1 today is worth more than $1 in the future. This is due to opportunity costs .

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Chapter 6

Chapter 6. Accounting and the Time Value of Money. 1. Basics. Study of the relationship between time and money Money in the future is not worth the same as it is today because if had money today could invest it and earn interest not because of risk or inflation Based on compound interest

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Single sum problems - PowerPoint PPT Presentation

The Time Value of Money

Chapter 6