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Time Value of Money

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Abstract

By the end of this chapter, you should be able to:

  • appreciate the concept of ‘time value of money’

  • compare simple and compound interest

  • calculate future value lump sum and prevent value lump sum

  • distinguish between effective rate and stated rate

  • explain and calculate perpetuities

  • calculate future and present values based on annuities

  • distinguish between ordinary annuity and annuity due

  • explain and calculate amortisation

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Abor, J.Y. (2017). Time Value of Money. In: Entrepreneurial Finance for MSMEs. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-34021-0_11

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  • DOI: https://doi.org/10.1007/978-3-319-34021-0_11

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  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-34020-3

  • Online ISBN: 978-3-319-34021-0

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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