Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Step 1: Introduction to concept of time value of money
The concept of time value of money will be used and applied here. As per the concept of time value of money the worth of money changes with passage of time as money has the power to earn interest. Future value of a present sum of money is computed by compounding the present amount of money.
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