What is meant by the Time Value of Money?
Money has time value. The idea behind time value of money is that a rupee now is worth more than rupee in the future. The relationship between value of a rupee today and value of a rupee in future is…
Tag Value of an Annuity
Present Value of an Annuity
The present value of annuity is the sum of the present values of all the cashinflows of this annuity. Present value of an annuity (in case of discrete discounting) PVA = FV [{(1+r)t – 1 }/ {r * (1+r)t}] The term…