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1. What is the time value of money?

The time value of money is an economic principle that states that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This is because money has the ability to earn interest, which means that a sum of money today will be worth more than the same sum in the future, since it can be invested and earn more. interest.

2. What is the difference between base and current rates?

The base rate is the interest rate that an individual or institution pays if they borrow money from a bank, while the current interest rate is what that same bank offers to people who want to borrow money. The time value of money is an economic principle that states that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This is because money has the ability to earn interest, which means that a sum of money today will be worth more than the same sum in the future, since it can be invested and earn more.

3. What is the difference between interest rates and dividend rates?

Interest rates are the amount that you earn for lending your money to a bank, while dividend rates are what a company pays to its shareholders for their ownership of that company.

Finance is the study of how people and organizations manage their money. It involves understanding how money is earned, invested, saved, and spent. It also involves analyzing financial markets, understanding risk and return, and making decisions about investments. Finance is an important part of any business or organization and can be used to make sound financial decisions that will help it succeed.

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