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An understanding of the time value of money is a critical contributing factor to successful investment and financing decisions. Write an academic paper of between 750 and 1475 words (3 to 5 pages) explaining the time value of money concept and its relationship to business and management as well as personal life.

Your paper should also include discussion on:

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  • Differences between present value and future value.
  • Differences between present value of ordinary annuity and present value of annuity due.
  • How the time value of money can be used by management to maximize return and reduce risk.

Be sure to:

  • Follow accepted research approaches and citation format (APA style).
  • Convey your understanding of the readings and concepts and their application to the topic.
  • Write in an organized and coherent way.
  • Check for and correct spelling, sentence structure, and grammatical errors.
  • Demonstrate graduate-level analytical skills. [MO5.2, MO5.3]

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