Fm Ppt LATHA

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Time valueof money



INTRODUCTION

• Time value of money is an important concept in financial

management. It can be used to compare investment

alternatives and to solve problems involving loans.

• Mortgages leaves, saving loans. Mortgages leases,savings and annuities.

• TVM is based on the concept that a dollar/rupee that you

have today is worth more than the promise or

expectation that you will receive a dollar/rupee in future.



INTEREST:- It is the change borrowing money usually stated as the

percentage of amount borrowed over a specific period of time.

SIMPLE INTEREST:- It is compounded only on the original amount

borrowed. It is the return on that principal for one time period.

COMPOUND INTEREST:- It is calculated each period on that original

amount borrowed plus all unpaid interest accumulated to date.

NO. OF PERIODS:- Periods are evenly spaced intervals of time.



PAYMENTS:- Payments are series of equal, evenly, spaced cash flows.

PRESENT VALUE:- Present value is amount today that is equivalent to a

future payment.

FUTURE VALUE:- It is the amount of money that an investment with a

fired, compounded interest rate will grow to by some future data.



COMPANY PROFILE• India first life insurance, a joint venture between two of

India’s largest public sector banks-bank of Baroda and

Andhra bank along with UK’s leading risk, wealth and

investment company legal and general.And it has tied

up with CGGB in Mangalargiri to reach out to itscustomer in the interland of A.P.

• The insurable population of the functional area is about

30lakh from which the company expects to cover nearly

3lakh accounts in a time line of 3years. The nature of the tie-up will be throw corporate agencies. Through

this tie-up with CGGB,India First will reach over 106

branches across 3 districts.



METHODOLOGY

• The collection of data have been carried out about 2 hrs at

the ‘CHAITANYA GODAVARI BANK’ which is located in

Mangalagiri.

• The primary data regarding the deposits was collected from

Mr.Nagaraju, who works on the department of the manager.



DATA COLLECTION• The primary data collected from the customer named

M.V.Prasana has invested 100000/- for 1 year with of

interest 9% .

• They supported me in completion of the proof attached.



NEED OF STUDY The calculations demonstrate that time literally is money.

Now you have the amount is not the same as it will be in

the future and vice versa.

It is important to know how to calculate the time value of money.

The worth of investments that offer you return at different

times.

The pre-details of the borrowers before the loans.



CONCEPTUAL RELEVENCE

o Simple interest is an old it is simply a certain percent of

money loaned.

o Compound interest is new invention on interest.

o

Money, besides being a measure of value is commodity.o When money is borrowed the ‘rent’ is called interest.

o It you borrow money you pay interest.

o The amount of interest of function of time, the value of

an amount of money.



SCOPE OF STUDY The scope of study helps us to know how much money

should paid yearly in order to clear the loan.

To apply the theoretical concept to the real world.



ConclusionFrom the analysis part it can be conclude that

customers have a good respond towards CGGB

advance products in Bhopal.

CGGB’s is in 1st position having large number of customers providing good services to

customers.



-BY

M.N.V LATHA

MBA.Asec

R.no:12251027

Fm Ppt LATHA

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