Time value of money is an important aspect of money management. Why is it important to know what interest rates, terms of an agreement, and present value are in relationship to future value when making financial decisions

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Katieconcannon3299idn Katieconcannon3299idn

31-12-2020
Business

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Time value of money is an important aspect of money management. Why is it important to know what interest rates, terms of an agreement, and present value are in relationship to future value when making financial decisions

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Wisewoman77idn Wisewoman77idn · Answer 1 · 2020-12-31T21:59:26-05:00

Wisewoman77idn Wisewoman77idn

31-12-2020

Answer:

Future value and present value are monetary concepts that a business owner uses every day, whether he realizes it or not. The idea is simple: Money in your pocket today is worth more than the same amount received several years in the future. The difference is the effect of inflation and the risk that you may not actually receive the money you expect in the future.

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