CFA考試
報考指南考試報名準考證打印成績查詢備考資料考試題庫

重置密碼成功

請謹慎保管和記憶你的密碼,以免泄露和丟失

注冊成功

請謹慎保管和記憶你的密碼,以免泄露和丟失

The Time Value of Money

幫考網校2020-08-06 18:25:37
|
The time value of money refers to the concept that money is worth more today than it is in the future. This is because money can be invested or earn interest, which means that it can grow over time. Therefore, a dollar received today is worth more than a dollar received in the future.

The time value of money is important in financial decision-making, as it affects the cost and profitability of investments, loans, and other financial transactions. For example, when considering a loan, the time value of money means that the borrower will have to pay more in interest over time, as the lender is giving up the opportunity to invest that money elsewhere.

Similarly, when investing, the time value of money means that the longer an investment is held, the more it can grow in value due to compound interest. This is why it is often recommended to start investing early and to hold investments for the long term.

Overall, understanding the time value of money is crucial for making informed financial decisions and maximizing the value of money over time.
幫考網校
|

推薦視頻

推薦文章

  • 暫無文章