Personal Finance
Personal Finance
7th Edition
ISBN: 9780134989969
Author: Madura, Jeff
Publisher: Pearson,
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Chapter 3, Problem 1RQ
Summary Introduction

To discuss: The relationship between time value of money and opportunity costs

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Explanation of Solution

The time value of money (TVM) is used to compare two or more outcomes of finance. It also connects with opportunity costs. TVM influences opportunity costs, since a dollar obtained today can be protected and earn interest, or it can be used on a variety of things.

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