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The concept of Time Value Money is quite interesting; students are seen seeking their major’s degree in the same. However, things are not as easy as it seems, and people do look out for Time Value Money assignment help online. In this write-up, you will be guided through the entire concept alongside the other essentials needed.
What is Time Value Money?
If you are thinking about the core principle of valuation, then Time Value Money Assignment Help is all that you need. The particular states that money of an equivalent amount will not receive the same value in the near future. For example: If you are able to spend half of your day with Rs.100 now, it will require you to spend Rs.1000 in the near future.
Here is a snippet explaining the entire Time Value Money setup
How to calculate Time Value Money?
Here is how you can calculate Time Value Money:
The formula for Present Value
PV = FV / [1 +( i / n) ^(n * t)
Here,
- PV = The Present Value
- FV = The Future Value
- i = The Annual Rate of Return (Interest Rate)
- n = The Number of Compounding Periods Each Year
- t = The Number of Years
The formula for Future Value
FV = PV * [ 1 + (i / n) ] ^ (n * t)
The theory behind Time Value of Money calculation
Per the theory, receiving money on the present date is more valuable than getting the same on the approaching days.
Hence, a dollar you have received today is worth more than the same you will receive on later dates. Also, there are proper reasons backing up the entire theory behind and let’s have a look into the same. The two are:
- Concept of inflation: A company’s economic state presents risks, and people are always concerned about what will happen if the company goes bankrupt.
- Cost related to opportunity:When you have access to funds at present dates, the same can be used to invest in projects of choice and achieve higher returns. This way, you can encash on the opportunity cost of money.
It is the nature of money to decrease in value with time, and factors like inflation play a heavy role in the same. That being said, cash flows related to the future have less value than the ones in the present dates.
What are the various components of the Time Value of Money?
- Rate of Discount/Interest: The rate of discount or compound that you apply over a sum of money, calculating its present and future value.
- Time Periods: The amount of time over which you want to calculate the future or present value related to a sum. These can be annual, semi-annual, weekly, monthly or more.
- Present Value: The amount you obtain after you have applied discounting rate on the future value of a cash flow.
- Future Value: The amount obtained after applying a compound interest rate on the present value of a cash flow.
- Instalments: It is also known as EMI, and you must pay prices periodically or receive money as well. The value runs positive when you are the one at the receiving end and changes to negative once payments are made.
Time Value of Money real-life applications
The concept of the Time Value of Money is relevant to individual situations where a particular party will be paying or receiving a particular amount from/to a third party. Here are some of the everyday situations where you can apply the same:
- EMIs related to loans: As we all know, EMI stands for Equated Monthly Installments and is also the prime factor in a loan. The concept of Time Value is used while calculating the EMI. As a consumer, you must remember to make a comparison between two current values or two future values in order to make the right kind of investment decision.
- Bond-specific Value of Investments:The formula of PV plays an important role when calculating the yield of maturity in a bond. As an investor, if you are thinking about investing in bonds for the future, the concept of Time Value is essential.
Things to consider before seeking help from Time Value Money assignment experts
However, there are a few tips that you need to keep in mind, and the following list abides by the same:
- Ask for work samples:
There are too many professionals offering Time Value Money assignment help services. However, things are not that easy, and you need to uplift your research game to understand the frauds clearly. It is important to go through the work samples of these experts in order to gain a comprehensive view of the type of assistance they provide. Also, it will help you judge whether the final work will be academic-worthy or not.
- Compare Time Value Money assignment help online rates:
Different professional services are available, offering buy assignment help online. However, the rates are different, and not all are well detailed with the final content they provide. Therefore, it is essential for you to make comparisons and choose one offering the right type of services within budget.
- Check the rework and refund policy:
Reworks are inevitable. It requires a thorough communication channel between the student and the experts providing Time Value Money assignment writing services to complete the tasks. So it is essential for you to check with the professionals if they have all the arrangements sorted out accordingly. How soon do their students’ support executives get back to the client in general, and what are the regular hours? Finally, ask for the refund policies online, as most of the websites are not that transparent.
Final Thoughts
The concept of the Time Value of Money is an essential concept in finance, and you need to have a thorough understanding of the same. Also, it abides by the idea that the value of money with similar denominations will decrease in the near future based on industry concepts. PV and FV are the driving force.
