TIME VALUE OF MONEY: APPLICATION AND RATIONALITY- AN APPROACH USING DIFFERENTIAL EQUATIONS AND DEFINITE INTEGRALS
Mahbub Parvez ()
MPRA Paper from University Library of Munich, Germany
The time value of money is one of the most important concepts in finance. Money that a firm has in its possession today is more valuable than future payments because today’s money can be invested to earn positive returns in future. The principles of time value analysis have many applications, ranging from setting up schedules for paying off loans to decisions about whether to acquire new equipment. Problems concerning Time Value of Money, which involves calculation of these concepts, are usually solved by algebraic formulae. This paper attempts to solve such problems using differential equations & definite integral techniques and makes a comparison with the results obtained by the traditional method.
JEL-codes: C02 (search for similar items in EconPapers)
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/10794/1/MPRA_paper_10794.pdf original version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:10794
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().