Describe how the time value of money impacts the terms of a business loan. Explain how the time value of money plays a factor in long-term financial decisions.

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Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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Chapter2: Using Financial Statements And Budgets
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Describe how the time value of money impacts the terms of a business loan. Explain how the time value of money plays a factor in long-term financial decisions.
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The time value of the  money states that an amount of money is worth more now than it will be in the future. This is due to the fact that money can only expand via investment. Missed opportunity is the  investment that is postponed.
The time value of money formula takes into account the quantity of money, its future value, the amount it can earn, and the time period. The number of compounding periods is also a key variable for savings accounts.

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