The Time value of money means the amount of interest earned over the period of time when the amount is invested in the initial period. The time value of money depends upon the factors like principal amount invested and the way it is invested like in lump-sum or in the form of annuity, interest rate earned, whether interest is computed on simple interest basis or on compounded basis and the number of periods for which the amount is invested. The Main key factors responsible for computation of time value of money need to be determined.

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Chapter 14, Problem 18ARQ

To determine

The Time value of money means the amount of interest earned over the period of time when the amount is invested in the initial period. The time value of money depends upon the factors like principal amount invested and the way it is invested like in lump-sum or in the form of annuity, interest rate earned, whether interest is computed on simple interest basis or on compounded basis and the number of periods for which the amount is invested.

The Main key factors responsible for computation of time value of money need to be determined.

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