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The Time Value of Money

Author

Listed:
  • Elena Valentina ȚILICĂ

    (Bucharest University of Economic Studies)

  • Radu CIOBANU

    (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.

Suggested Citation

  • Elena Valentina ȚILICĂ & Radu CIOBANU, 2020. "The Time Value of Money," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 1(6), pages 38-42, June.
  • Handle: RePEc:ahd:journl:v:1:y:2020:i:6:p:38-42
    DOI: 10.37945/cbr.2020.06.05
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    More about this item

    Keywords

    capitalization; discounting; monetary values; time value of money;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G19 - Financial Economics - - General Financial Markets - - - Other

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