Category: Education

Time & Money – Net Present Value

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The Time Value of Money is a commonly used financial concept that explains how the value of money fluctuates over time. Specifically used in financial calculations, it is based on the idea that a certain amount of time or money today is worth more than the same amount in the future due to its earning […]

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Cumulative vs Annual Compound Rates of Return

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Returns can be presented on a cumulative basis or as an annual compound rate. It is critical that investors understand the difference between these two methods of reporting. Cumulative Returns Cumulative returns express the total percentage increase in the value of an investment from the time it was purchased. Example: You purchased XYZ shares 10 […]

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