time value of money and term structure of interest rates : how to borrow in the...

90.2K

Verified Solution

Question

Finance

time value of money and term structure of interestrates : how to borrow in the market and how to invest in the marketwithout other risks and only considering the time value ofmoney?
How to borrow in the market and how to invest in themarket without get the risks? (just give the explanation)
and the formula for Time value of money and termstructure of interest rates.

Answer & Explanation Solved by verified expert

4.3 Ratings (595 Votes)

Money is worth more more in the present than in the future because theres an opportunity cost to waiting for it In addition to your loss of use if you dont get your hands on it right away theres also inflation gradually eroding its value and purchasing power If youre going to part with your money for any period of time you probably expect a larger sum returned to you than you started with Whether youre lending or investing the goal is to make a gain to compensate you for going without your money for awhile Time is also money when it comes to paying off debtWhether it is credit card debt student loan debt or a mortgage the more time it takes you to pay the See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

time value of money and term structure of interestrates : how to borrow in the market and how to invest in the marketwithout other risks and only considering the time value ofmoney?How to borrow in the market and how to invest in themarket without get the risks? (just give the explanation)and the formula for Time value of money and termstructure of interest rates.