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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Week Six Individual Discussion Questions

Week Six Individual Discussion Questions

Q Reply to the following instructor's general discussion question(s) according to the discussion board guidelines. The time value of money is a core concept of finance and investing. I would say it's also very important in financial and managerial accounting. In fact, page 6-3 of the textbook presents applications of time value of money in financial accounting. Please tell us about your experiences (in academia and real life) with the time value of money concept.

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The nominal interest an investment or a loan is simply the stated rate on which interest payments are calculated this is the rate on which savings secure interest over a period of time. Pure rate of interest is the amount charged by the lender in the case where there are no possibilities of the fall or expectation of inflation. Deducted inflation rate of interest in the inflationary period lenders recognize that they are paid less in the form of interest so to cover the laws they charge higher interest in a high inflation period.