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Topic 2 - Time Value of Money
25300 - Fundamentals of Business Finance
8 Pages • Topic Notes • Year: Pre-2021
Covered in notes: Explain the time value of money concept Appreciate the differences between simple interest and compound interest Be familiar with the terminology Calculate the future value of a single amount Calculate the present value of a single amount Calculate effective rates and distinguish them from nominal rates Understand the effects of compounding Draw time lines to represent the DCF process
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