Time value of money

Time value of money means the receivable money is today is more valuable than if it received in next year in accounting period. There have a certain cause of happening that. If any company received money today, there creates an opportunity to invest a portion of received money and can gain earn from investment.

If any company received 1000 dollar today and invest 8 parent in business to earn and finally profits 80 dollar in accounting period. The receivable amount will reach in 1080 dollar.

Hence, the received amount today 1000 dollar is equal to the received amount 1080 after a one year of accounting period.

The time value money of 8 percent means that today's receivable money is equal to 8 percent more than one year next receivable amount.

এই ব্লগটি থেকে জনপ্রিয় পোস্টগুলি

How To write novel

How to write novel Writting novel is not an easy task. But some techniques can make it easy.

আরও পড়ুন

Hawking radiation

Stephen Hawking says about Black hole that it is not quite black. Rather, it radiates energy from its event horizon. This radiate energy is named as Hawking radiation according to the name of physcist Stephen Hawking. Event horizon is the boundary of black hole from where the minimum effect of black hole exists. Recent discovery of science is Black hole information paradox. According to black hole information paradox, everything engulfed by black hole is displaced and transform into information and these information convert into energy and finally radiates through event horizon of black hole.

আরও পড়ুন

Donald Trump in White House

আরও পড়ুন

Amazing Everything

এই ব্লগটি সন্ধান করুন