Time Value of Money
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Title: Time Value of Money

Essay Details:

Subject: Business
Author: Tyler D
Date: May 13, 2015
Level:
Grade: A
Length: 3 / 750

Essay text:

This paper discusses some of the key components of time value of money and identifies the application of time value of money in various businesses. Commercial banks use various time value of money formulas daily. One example of the application of time value of money in commercial banks is through mortgages. Using the formula for present value of an annuity, a bank will solve the formula to determine the monthly payment amount, the borrower’s monthly mortgage payment. Credit card financial service companies are commonly known to issue private student loans. Therefore, credit card companies would use the time value of money to determine loan payment schedules and the number that students most fear, the ending balance, the future value of the loan...

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