Finance
Difference between ordinary annuity and annuity due
The difference between ordinary Annuity and Annuity Due are below: Ordinary Annuity: Definition: Ordinary annuity is the payment or receipt occurs at the end of each…
Time Value of Money
Finance
Difference between Discounting and Compounding
The process used to resolve the future value of the present investment is known as Compounding. It is the procedure of earning interest over time.…
Finance
What are the determining factors of time value of money?
The time value of money relevant to making financial decisions because: Investment decision: Investment in current tear and cash inflows received in future from that…
Finance
What is rule of 72 and rule of 69?
Rule of 69 Use N = 69 when dealing with any continuous growth process, or when you have a periodic growth process and the rate…
Finance
Define time value of money
The time value of money theory states that a dollar that you have in the bank today is worth more than a reliable promise or…