CHAPTER 4
Interest Formulae and Their Applications
4.1 INTRODUCTION
It has been recognized that the value of money is different at different time periods and this concept is referred to as time value of money. In this regard, it is recognized that a rupee today is worth more than a rupee one or more years from now because of the interest or profit it can earn. Thus, it can be said that interest is the manifestation of time value of money.
4.2 WHY RETURN TO CAPITAL IS CONSIDERED?
Capital is required in engineering, other business projects and ventures for their operations. The capital thus required may be classified into two broad categories.
Equity Capital: It refers to the capital owned by individuals who have invested their money or property ...
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