Interest & Time Value of Money
What interest & time value of money means
Simple and compound interest and present value.
Worked example
One question from this skill's own question bank, shown with its full working.
The idea that money today is worth more than the same amount later is called
- the time value of money
- inflation only
- depreciation
- taxation
Working: Money now can be invested to earn returns over time.
Curriculum and exam alignment
Curriculum notes are a general guide to where this work normally sits. Always check the syllabus your school or examination body is currently using.
Related skills
Other Financial Mathematics skills in Actuarial Science, at the same point in the course.
Other Actuarial Science topics
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Practise interest & time value of money
6 questions with a worked answer after every attempt, and a SmartScore that tracks how close you are to mastery.