The Time Value of Money

The Time Value of Money

Number 6, June 2020  »  Finance

Associate Professor Elena Valentina Țilică, PhD
Lecturer Radu Ciobanu, PhD
Bucharest University of Economic Studies

Abstract: A fundamental financial principle regarding the time value of money is that one Euro received a year from now is worth less than one Euro received today. Therefore, in relation to any financial analysis, comparisons between monetary values should be made using capitalization and discounting techniques, as shown in this paper.
Classification JEL: G11, G12, G13, G17, G19 | Pages: 38-42

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