Time Value Of Money
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Assets invested or borrowed will be worth a different amount in the future than the present value depending on how money is used. In addition, money invested in depreciating assets will not be able to be recouped over a period of time.

  • Interest: Fee paid to a lender to borrow money.
  • Simple Interest: computed to the amount of the principal for one time period.
  • Compound Interest: computed on both the outstanding principal and any interest earned that has not been paid or withdrawn.
  • Tax Revenue: Expected revenue from levying taxes.
  • Bonds for Capital Projects: Long-term loans that require a tax increase and voter approval.
  • Grants: Money gifts from other institutions invested for a particular purpose.
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