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#reading-6-time-value-of-money

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#reading-6-time-value-of-money

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**Subject 1 Time Value of Money and Interest Rates**

n, interest rates, required rates of return, discount rates, opportunity costs, inflation, and risk. It reflects the relationship between time, cash flow, and interest rate. There are three ways to interpret interest rates: <span>Required rate of return is the return required by investors or lenders to postpone their current consumption. Discount rate is the rate used to discount future cash flows to allow for the time value of money (that is, to bring a future value equivalent to present value). Opportunity cost is the

n, interest rates, required rates of return, discount rates, opportunity costs, inflation, and risk. It reflects the relationship between time, cash flow, and interest rate. There are three ways to interpret interest rates: <span>Required rate of return is the return required by investors or lenders to postpone their current consumption. Discount rate is the rate used to discount future cash flows to allow for the time value of money (that is, to bring a future value equivalent to present value). Opportunity cost is the

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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