A key concept in economics and finance is the time value of money.
Most investment decisions, like buying a house, paying for your education, or starting a business, involve making a payment up front in order to earn a return later. (You pay money out at one or more points in time and later receive your benefits based on the investment’s agreement.)
Additionally, economic factors such as supply and demand can play an important role in your investment process. If there is a huge supply of houses available in a neighborhood you like, housing prices in that neighborhood may go down due to a lack of current demands.
Therefore, you as the buyer have more power and may be able to make an offer that is lower than the initial asking price. Alternatively, in a neighborhood that is very much in demand and low in available housing, the housing prices may be higher, and you may need to offer to pay more to compete with other offers for a home there.
Decisions in investments can end in a variety of ways. Applying your problem solving skill and critical thinking strategies can help you successfully analyze opportunities to bring the best benefits for your efforts. Adjusting for the time value of money lets you calculate if the rewards are worth the wait so that you can arrive at an informed decision before you commit your money.
In this week’s discussion:
Identify an investment decision that you or someone else has made. (This should be for goods or services for which one or more payments were made in order to receive increased benefits from those goods or services at a later time.)
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more