In calculation of time, value of money, "N "represents___________?
Correct answer: A. Number of payment periods
- A. Number of payment periods
- B. Number of investment
- C. Number of installments
- D. Number of premium received
Explanation
In time-value-of-money formulas, N denotes the total number of compounding or payment periods. It is not necessarily the number of installments unless each installment corresponds to exactly one period.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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