Business Essentials (11th Edition)
11th Edition
ISBN: 9780134129969
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 17.1QR
Summary Introduction
To explain: The concept of time value of money.
Expert Solution & Answer
Explanation of Solution
Time value of money:
It is the concept in which the interest gained is accumulated with each added time period. The concept arises from the principle of compound growth. The earning capacity of the investment is multiplied by each extra time period, where the interest is accumulated.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Discuss how the Invention of Money took placed.
What are the characteristics of money? Which do you think is most important?
PermalinkReply
Discuss the role of financial markets in an economy.
Chapter 17 Solutions
Business Essentials (11th Edition)
Ch. 17 - Prob. 17.1QRCh. 17 - Prob. 17.2QRCh. 17 - Prob. 17.3QRCh. 17 - Prob. 17.4QRCh. 17 - Prob. 17.5QRCh. 17 - Prob. 17.6QACh. 17 - Prob. 17.7QACh. 17 - Prob. 17.8QACh. 17 - Prob. 17.11ACh. 17 - Prob. 17.12A
Ch. 17 - Prob. 17.13ACh. 17 - Prob. 17.14ACh. 17 - Prob. 17.15ACh. 17 - Prob. 17.20EECh. 17 - Prob. 17.21EECh. 17 - Prob. 17.22EECh. 17 - Prob. 17.23CCh. 17 - Prob. 17.24CCh. 17 - Prob. 17.25CCh. 17 - Prob. 17.26CCh. 17 - Prob. 17.27CCh. 17 - Prob. 17.28CCh. 17 - Prob. 17.29CCh. 17 - Prob. 17.30CCh. 17 - Prob. 17.31C
Knowledge Booster
Similar questions
- What is speculative production? How is it related to a firm’s cash-flow problems?arrow_forwardExplain how the business is limited to people who have money to invest.arrow_forwardWhat are the components parts of the non-bank financial system? Discuss briefly the salient features of each .arrow_forward
- how do banks improve their net income to increase Return on Equity? what are the risk implications ?arrow_forwardWhat are the objectives of finance? How can these objectives be met?arrow_forwardWhat are the key factors that managers should consider when analyzing the impact of monetary policy on their organization's financial performance and strategic decision-making?arrow_forward
- What are some steps managers can take to enhance internal control over cash?arrow_forward1. How does interest rate affect the transfer of funds from the lender to the borrower?2. How do taxes affect a business firm?arrow_forwardMoney Management. What happens when a student loan defaults, what is the consequence?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Foundations of Business (MindTap Course List)MarketingISBN:9781337386920Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage LearningFoundations of Business - Standalone book (MindTa...MarketingISBN:9781285193946Author:William M. Pride, Robert J. Hughes, Jack R. KapoorPublisher:Cengage Learning
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning