Finance

The metre esteem of specie is a very significant concept because it deals with the actual value or worth that capital has in the present time as compared to the equivalent core of money in the future . Simply put , this goernment agency that money today is not the same as the same total of money tomorrow . The case for this is that the same money can be used to create more money or that same money can depreciate over the same period of time . This is analogous to the opportunity approach in economic theory in that it deals with the time value of moneyOne instance wherein the time value of money is important is in deciding how much down payment to make . The reason for this is that making a larger down payment room that the monthly payments are smaller and the interest payment is glower .

At the same time , a person unavoidably to look at the opportunity cost or the heart and soul that can be earned by the same amount of money if it was not paid upfrontA second scenario would be the time value of money when investing one s funds in mutual funds with x percent return as opposed to placing the money in a business with a high risk but also a higher rate of return The scenario here is looking at a higher rate of return at a shorter sweep up of time and sign onting secured returns at a lower rate over a longer period of...If you want to get a full essay, order it on our website: Ordercustompaper.com

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