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Accounting At Your Fingertips, 2e by George R Murray

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9

Time Value of Money

9.1 Time Value Basics

9.2 Applying Time Value of Money

9.3 Investments

9.4 Long-Term Receivables

9.5 Capital Leases

9.6 Long-Term Liabilities

9.1 Time Value Basics

Understanding Time Value

Computing Interest

Annuities

The value of certain assets and liabilities depends on how long you hold them and at what price. This subchapter explains the time value of money concept and demonstrates the basics of computing interest and determining values for these accounts.

Time value of money is the concept that there’s a difference between $1 today and $1 sometime in the future.

Understanding Time Value

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