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Finance is considered as one of the most difficult but important subject in academics. Students who want to make their career in finance needs to take it very seriously. They are given variety of assignments to judge their analytical skills. Students with professional degrees are generally very busy in their schedules and didn’t find time to complete assignments. So they can take help form online finance assignment help. Expertsmind provides online finance assignment help to students. Students can get their assignments done in a highly professional, presentable and efficient manner.

The time value of money is the value of money figuring in given amount of interest earned over a given period or amount of time. The time value of money is the essential concept in finance theory.

For instance, $200 of today’s money invested for one year and earning 10% interest will be worth $220 after one year. Therefore, $200 paid now or $220 paid exactly one year from now both have the equal value to the recipient who presumes 10% interest; By time value of money terminology, $200 invested for one year at 10% interest has a future value of $220.

All the standard calculations for time value of money obtain from the most basic algebraic expression for the present value of a future sum, “discounted” to the present by an amount equivalent to the time value of money. For instance, a sum of FV to be received in one year is discounted at the rate of interest r to give a sum of PV (at present): PV = FV − r·PV = FV/(1+r).

Several standard calculations based on the time value of money are:

  1. Present value – The current worth of a specified future sum of money.
  2. Present value of an annuity – An annuity is a series of equivalent payments or receipts that take place at evenly spaced intervals. Rental payments and Leases are examples.
  3. Present value of perpetuity – is an infinite and constant stream of similar cash flows.
  4. Future value – is the value of an asset or cash in the future that is equal in value to a specified sum today.
  5. Future value of an annuity (FVA) – is the future value of a series of payments.

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