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The Time Value of Money
B Dr. Ga an Kukre a
The Time Value of Money
Compounding and
Discounting Single Sums
We know that receiving Rs.1 today is worth
more than Rs.1 in the future. This is due to
opportunity costs.

The opportunity cost of receiving Rs.1 in the future is theinterest we could have earned if we had received the Rs.1 sooner.

Today
Future
of 00

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