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Management · Q309

Financial Management

Graduate and Post Graduate · Management · question 309

Q309

In time value of money, nominal rate is

A.
not shown on timeline
Answer
B.
shown on timeline
C.
multiplied on timeline
D.
divided on timeline

Answer: Option A

Solution

Answer: Option A
Solution:
In time value of money, nominal rate is not shown on timeline. The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.