The use of the time value of money in real life

You're an accountant.

Understanding the time value of money:

1. The time value of funds refers to the appreciation of money over time, and it is the amount of appreciation after the use of capital turnover.

2. The time value of funds refers to the fact that a certain amount of currency held at present has a higher value than the equivalent amount of currency obtained in the future. The reason why the purchasing power of the current unit of money is different from that of the future unit of money is that in order to save the current unit of money and change to consumption in the future, there must be more than one unit of currency available for consumption in the future consumption as a discount to make up for the delayed consumption.

3. The time value of funds refers to the value-added characteristics of funds of the same amount of funds at different points in time.

Significance of the time value of money:

1. The temporal factor of capital movement is an economic category under the negative conditions of commodity production and commodity exchange. No matter what social system, as long as there is commodity production and commodity exchange, the influence of the time factor on the value of money must objectively exist.

2. Pay attention to the value of funds, which can promote the scientific control of the use and investment of funds, the scale of investment and the time and method of currency investment, and avoid unnecessary backlog and waste of funds.

3. The time value of funds affects the evaluation of the economic benefits of the investment planWhen evaluating the investment plan, it is necessary not only to calculate the amount of the initial investment of the plan, but also to calculate the impact of the "new investment" caused by the monetary time intermediary factor on the economic efficiency flow of the program.

Understanding: 1. The time value of funds.

It refers to the appreciation of money over time, and it is the amount of appreciation after the use of capital turnover. Also known as the time value of money.

2. Over time, the value of the capital will increase, which is called capital appreciation. From an investor's point of view, the value-added nature of the money gives it a time value.

3. Once the funds are used for investment, they cannot be used for immediate consumption. From a consumer's point of view, the time value of money.

This is reflected in the compensation that should be received for the loss of abandonment of spot consumption.

4. From an economic point of view, the reason why the purchasing power of a unit of currency at present is different from that of a unit of currency in the future is that if you want to save the current unit of currency and do not consume it in the future, you must have more than one unit of currency available for consumption in the future as a discount to make up for delayed consumption.

5. The time value of funds, that is, how much money should be prepared now when a fund can be used in the future. Or the question of how much money is worth now to the future.

The time value of money has significance.

1. Mastering the theory of the time value of funds is helpful for enterprises to use funds scientifically and rationally, and any assets of the enterprise can only be used as funds to realize their time value only by participating in the movement of funds, and idle assets are not current assets.

or fixed assets.

It is impossible to create time value, and over time, it will lose its original value.

2. The concept of the time value of funds can be urged to save the use of funds, fully improve the use of funds, fully realize the time value of funds, and maximize the value of funds within a limited range of time and space.

Time value of money.

The essence is that funds have different values at different times, and the difference in the value of funds in the turnover due to time factors is called the time value of funds.

Extended Materials: I. 1The reasons for the time value of funds are:

1) Inflation, currency depreciation;

2) assumption of risk;

3) The value of the currency is increased.

2.The law of movement of money is the law of the change of the value of money over time.

3.The future value is a sum of money or a series of payments made now at a given interest rate.

Calculate the resulting value at a future point in time.

4.PresentValue is the present value of a sum of money or a series of payments in the future at a given interest rate.

2. The concept of time value of money: It is a dynamic concept that can be understood from two aspects:

1.On the one hand, capital invested in the economic field, through the productive activities of workers, and accompanied by the passage of time, can increase in value, which is manifested as net income.

That's what the money is"Time value"；

2.On the other hand, if you give up the right to use the funds, it is equivalent to losing the opportunity to earn, which is equivalent to paying a certain price, and this price in a certain period of time is also funding"Time value"。

3. Manifestations of the time value of funds:

1.From an economic point of view, the purchasing power of a unit of currency today versus a unit of currency in the future.

The reason why it is different is that if you want to save one unit of currency in the present and do not consume it in the future and change it to eliminate the slag in the future, you must have more than one unit of currency available for consumption in the future, as a discount to make up for the delayed consumption.

2.Economic and social development consumes social resources, the existing social resources constitute the existing social wealth, and the future material and cultural products created by using these social resources constitute the future social wealth.

3.In the monetary economy, money is the embodiment of the value of commodities, the current money is used to govern the current commodity, and the future money is used to dominate the future commodity, so the value of the current money.

Naturally higher than the value of the future currency. The market rate of interest is a reflection of average economic growth and the scarcity of social resources, as well as a measure of the time value of money.

standards.

Time value of money: The time value of money is the time value of money that increases in value over time during the movement.

The time value of funds is the starting point and basis for the dynamic analysis of construction projects and investment programs, and it is of great practical significance to study the time value of funds. Slow.

It is mainly manifested in the following three aspects:

1. It is conducive to the flow of funds to more reasonable investment projects.

2. Make the process of movement of funds more manageable.

3. The funds invested in the construction project may have different channels.

The time value of money is that a certain amount of money held today has a higher value than the same amount of money that will be acquired in the future.

From an economic point of view, the reason why the purchasing power of a unit of money at present is different from that of a unit of currency in the future is that in order to save a unit of currency from now and consume it in the future, there must be more than a unit of currency available for consumption in the future as a discount to compensate for delayed consumption.

The time value of money, the essence of capital turnover, and the amount of value added after use. Also known as the time value of money.

The definition given by experts is that the time value of money is that a certain amount of money held at present has a higher value than the equivalent amount of money obtained in the future. From an economic point of view, the reason why the purchasing power of a unit of money today is different from that of a unit of currency in the future is that if you want to save the current unit of money and consume it in the future, you must have more than one unit of inflated money to consume in the future as a discount to make up for delayed consumption.

To put it more simply, the time value of funds refers to the fact that the same amount of funds has different values at different points in time, and the value-added characteristics of funds.

The time value of Zixiao Liangjin refers to the capital appreciation or economic benefits generated by the change of time in the process of expanding the cycle and turnover of reproduction. It is a dynamic concept that can be understood from two aspects: on the one hand, capital is invested in the economic field, through the production activities of laborers, and with the passage of time, it can increase in value, and the liquid transportation is expressed as a net income, which is the capital buried in the auction"Time value"；On the other hand, if you give up the right to use the funds, it is equivalent to losing the opportunity to earn, which is equivalent to paying a certain price, and this price in a certain period of time is also funding"Time value"。