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Time Value of Money

Time Value of Money

"The principal amount that money receive in the present is worth more than the same type as before amount received in the future."
- Mr. Benton

"The value of money refers to the fact that the same money return has a higher present value if it is to be received yearly than it is to be received later."
- E. A. Kolb

"Thar the value of a same of money received today is more than its value received after sometime."
- M. Y. Khan & Jain

Concept of Future Value:

"Future value is the value at some future time of a present amount of money or a series of payments, evaluated at a given rate."
- J. C. Van Horne and J. M. Wachowicz J. R.

"The future value of a present amount is found by applying compound interest over a specified period of time."
- L. J. Gitman


"An annuity is a stream of equal annual cash flows. It involves calculations based upon the regular periodic contribution or receipt of a fixed sum of money."
- Khan and Jain

"An annuity is a series of equal payments made at fixed intervals for a specified number of period."
- Basely and Brizham

"A annuity is a stream of equal cash flow. This cash-flows can be inflows of returns earned on investments or outflows of funds invested to earn future returns."
- L. J. Gitman

"An annuity is a series of equal payments or receipts occurring over a specified number of periods. In an ordinary annuity payments or receipts occur at the end of cash period."
- James C. Van Horne and John M Wachowicz JR.

Annuity Due:

"Annuity due calls foa series of equal payments occuring at the beginning of each period."
- J. C. Van Horne and J. M. Wachowicz

"An Annuity whose payments occurs at the beginning of each period is called an annuity due."
- Basely and Brizham


"A perpetuity is an ordinary annuity where payment or receipts continue forever."
- Van Horne and Wachowicz

" A perpetuity is an annuity with an infinite life in other words, and annuity that never stops providing its holder with a cash flow at the end of each year."
- L. G. Gitman

Present Value:

"The current value of a future amount of money, or a series of payments, evaluated at a given interest rate is called the present value of money."
- James C. Van Horne

"Present value is the current worth of a future monetary unit discount at the appropriate interest rate."
- Botten an Conn

"Present value is the value of money at a present date that will paid or receive in future period."
- Schall and Haley

Present value of perpetuity:

"A perpetuity is an ordinary annuity whose payments or receipts continue forever."
- Van Horne

"An annuity that goes on for ever is called a perpetuity."
- M. Y. Khan and Jain


"The provision for the gradual extinction of a debt by means of a sinking fund is called amortization."
- Dictionary of Economics and Commerce

"The setting aside of money at intervals for the gradual payment of a debt is called amortization"
- John J. Hampton

"Amortize means to pay back a debt by making small regular payments over a period of time."
- Oxford Dictionary


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Write a dialogue between two friends about the proper use of time

Suppose, You are Lina and Mina is you best friend. Now, write a dialogue between you and Mina about the proper use of time.

Dialogue: A dialogue between two friends (myself: Lina and my friend: Mina) about the proper use of time.

Lina: Hello Mina, how are you?
Mina: I'm not well.

Lina: Why! What happened?
Mina: My results of the HSC pre-test examination are not good.

Lina: What's the problem? Didn't you learn your lessons regularly?
Mina: No, I was not serious in using time properly and very often I wasted my valuable time on Facebook.

Lina: Oh, God, you are sure to fail in the HSC Examination.
Mina: Please tell me what I can do.

Lina: You must be sincere about your time. If you utilize of your time, you are sure to succeed.
Do you know about the benefits of using time properly?
Mina: Oh, no. I don't.

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Write a dialogue between two friends about the uses and abuses of Internet

Write a dialogue between two friends about the uses and abuses of Internet.

Dialogue:A dialogue between two friends (Lina & Mina) the uses and abuses of Internet.

Lina: Hi! How are you, Mina?
Mina: Fine and you?

Lina: I'm also fine. Where are you going now?
Mina: I'm going to the cyber cafe. I will have to submit an application via internet.

Lina: Oh I see. I will be very glad if you kindly tell me something about the uses of Internet.
Mina: Internet is a computerized network of information. Internet allows us to meet new people and discover new places even though we are not there. With the help of internet, we can get information about new books, movies, latest news, music, medicine, invention and can send mail electronically to any part of the world.

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Lina: How does it work in the field of education?
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Dialogue about environment pollution.Karim: Good morning, Rahim?
Rahim: Good morning.

Karim: How are you, friend?
Rahim: I am fine and you?

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Karim: I am also fine. But why do you look so worried?
Rahim: You are right. I am somewhat worried about environment pollution.

Karim: Oh, Yes! Environmental pollution is one of the biggest problems the world faces today. It is being polluted day by day.
Rahim: You are absolutely right. This polluted environment causes much harm to us.

Karim: Exactly! But what are you thinking about its consequences?
Rahim: The consequence of environmental pollution is an issue that troubles us economically, physically and everyday of our lives.

Karim: Absolutely! Besides, the increase of world temperature is the result of environment pollution. What is your idea about it?
Rahim: I agree with you. I think the plants and animals are likely to be extinct…