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Time Value of Money
Time Value of Money
VALUE:
VALUE:
-Anything becomes valuable when there is demand but limited supply.
Rice,water,car,etc- are valuable because there is demand and limited supply
Air, sunlight- cannot calculate financial value because of unlimited supply
TIME-VALUE:
TIME-VALUE:
-People prefer money now than later. So, "demand of money NOW is greater than LATER."
On the left in ppt, we have discussed in a very easy way that how different demands at different time corresponds to different value.
- We will learn to use this concept of time value to our advantage in our day to day life.
Interesting example of effective use of time value of money in life-2
Interesting example of effective use of time value of money in life-2
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