Business Essentials (12th Edition) (What's New in Intro to Business)
Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
Question
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Chapter 17, Problem 17.1QR
Summary Introduction

To explain: The concept of time value of money.

Expert Solution & Answer
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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.

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