Time Value of Money: Financial Examples and Calculations Using Tables and Calculators
LaDue, Eddy L.
The time value of money is a very important concept in agricultural finance. It is widely used in investment evaluation, particularly for discounted cash flow analysis of investment alternatives. It is also very useful in determining values for financial transactions. For these transactions, the interest rate reflects the time value of money and the monetary values used are determined by time value concepts. This publication provides a discussion of the time value of money concepts and their application to financial transactions. A series of examples are presented to illustrate the application and calculations for each concept. Example calculations are given in detail to allow readers to learn the calculation procedure. Agricultural finance examples are used throughout.
A.E. Ext. 93-18
Charles H. Dyson School of Applied Economics and Management, Cornell University