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Determining Future Values

Similar to determining present value amounts, determining future values depends on the concept of time value of money. This concept states that if the same amount of money is available now and in the future, it is worth more at present due to the potential to earn more money. So, due to time value, the […]

Determining Present Values

An important concept in managing finances is the concept of time value of money, which says that if the same amount of money is available now and in the future, it is worth more now due to the potential to earn more money. By simply depositing money into a savings account, for example, the amount […]

Bonds Payable

Bonds payable are a type of long term debt issued by businesses and governments for immediate cash needs. Unlike stocks, bonds have a fixed maturity date at some point in the future, with interest paid out on a frequent basis as per a formalized agreement. For businesses, issuing bonds is considered advantageous over stock because […]

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