The concept of Time Value Money is very important in investing. When you have money in...

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The concept of Time Value Money is very important in investing.When you have money in your "hand" in todays world, it is worthmore than it could be in the future. When you are investing, youhave no idea what the future will hold or how much your dollar willbe worth. Since money earns interest, it is worth more the earlierthat you invest it and can get a return on your investment. In thePrudential commercials, they do a good job demonstrating simpleconcepts of investing to consumers and educate them on whatinvesting means and how to do it. Financial literacy education isvery important to consumers so that they can learn what investingis, how to do it, and how to earn the most from theirinvestment.

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Time value of money TVM means that worth of a dollar recieved today is different from the worth of a dollar to be received in futureit is one of the basic concepts of financeThe preference for money now as compared to future money is known as time preference of money reasons for time preference of money 1risk factor there are financial and non financial risks involved over timefurther there is uncertainty about receipt of money in future because the longer the time    See Answer
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The concept of Time Value Money is very important in investing.When you have money in your "hand" in todays world, it is worthmore than it could be in the future. When you are investing, youhave no idea what the future will hold or how much your dollar willbe worth. Since money earns interest, it is worth more the earlierthat you invest it and can get a return on your investment. In thePrudential commercials, they do a good job demonstrating simpleconcepts of investing to consumers and educate them on whatinvesting means and how to do it. Financial literacy education isvery important to consumers so that they can learn what investingis, how to do it, and how to earn the most from theirinvestment.A 100 response back to the above statement

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