The concept of the Time Value of Money (TVM) is fundamental in finance and economics. It emphasizes that a sum of money has greater value now than it will in the future due to its potential earning capacity. Understanding this principle is crucial for making informed financial decisions, whether you’re evaluating investments, loans, or savings options. This book, ‘Time Value of Money: Concept & Analysis,’ published by Jossey-Bass, delves deeply into the meaning, importance, and various techniques for valuating money.

In this enlightening read, you will explore essential topics such as rates of interest, the determination of the number of periods, and important concepts like sinking funds and annuities. Each chapter is designed to build your understanding step-by-step, answering critical questions like:

• Why does money have a time value?
• How can you translate a lump sum monetary amount into time lines?
• What is the relationship between future and present values?
• What are the concepts of discounting and compounding rates of interest?
• How do you value a series of cash flows, whether even or uneven?
• How can you calculate future value, present value, and unknown interest rates given other variables?
• How do you identify the future value (FV) and present value (PV) of annuities?
• What are the differences between a regular annuity and an annuity due?
• What constitutes a deferred annuity?
• What are the distinctions between annual percentage rate (APR) and effective annual rate (EAR)?
• What are the nominal, periodic, and effective rates?
• How should one choose between securities with different compounding periods?

This comprehensive guide not only provides theoretical insights but also practical applications of these concepts. It includes detailed explanations that help you grasp the complexities of financial decision-making. Whether you are a student, a finance professional, or simply someone interested in understanding money better, this book serves as an invaluable resource.

Dr. Manika Singla, the author of this book, brings her extensive academic background and practical experience to the table. With a PhD in Economics and an MBA in Finance, she has spent over five years imparting management education and contributing to the academic field through various research papers. In addition to her academic pursuits, Dr. Singla is also an entrepreneur and has authored another book titled ‘Understanding and Measuring Tourism Impacts: An Integrated Approach.’ Her unique blend of academic and practical insights makes her well-equipped to guide readers through the intricacies of the Time Value of Money.

In conclusion, ‘Time Value of Money: Concept & Analysis’ is not just a book; it is a comprehensive toolkit designed to help you navigate the financial landscape with confidence. Equip yourself with the knowledge to make sound financial decisions by understanding how money works over time.