Time Value of Money

Time Value of Money - the amount of money received to day is much more than the amount of money to be received tomorrow. It is because a peso or a money received today, can invested to earn interest. and
the amount of interest earn depend on the rate and  time of the investment.

Example if you invested 500 pesos today at 5% interest at 5 years.The sum of money you received after 5 years is 625 pesos using simple interest. so money has a time value when we invest it with expected rate of return.


Time Value of Money

1. Simple Interest
2. Compound Interest
3. Amortizing a Loan
4. Compounding more than once per year

can be earned on the investment

"Lets Your Money Work for You"