Introduction In financial management, one of the most important concepts is the Time Value of Money (TVM). Many of the assets businesses and individuals own are financed with money borrowed from others, so the understanding TVM is crucial to making good buying and borrowing decisions. This paper will examine the effect of annuities and other investments on TVM problems and investment outcomes. TVM and Opportunity Cost The essence of the TVM concept is that today's …showed first 75 words of 912 total…

…showed last 75 words of 912 total…Components/Finance/TVM/concepts.html Investopedia.com. (2006). Opportunity Cost. Retrieved May 14, 2006, from http://www.investopedia.com/terms/o/opportunitycost.asp Investopedia.com. (2006a). Annuity. Retrieved May 15, 2006, from http://www.investopedia.com/terms/a/annuity.asp Moseley, C. (December 14, 1998). Spies asks real-world questions. Princeton Weekly Bulletin. Retrieved May 15, 2006, from http://www.princeton.edu/pr/pwb/98/1214/spies.htm Woodward. D. (2006). The Power of Compounding Interest. Retrieved May 14, 2006, from http://mutualfunds.about.com/cs/mutualfunds101/a/compounding.htm