Financial Tips

Time Value Of Money Time value money is a fundamental concept in finance, It states that the value of money changes over the time due to factors such as interest, Inflation and opportunity cost. Time value of money principle states that receiving money today is generally more valuable than receiving the same amount of money in future . A person having the money in hand can invest it for better returns in future. On the other hand the same amount receive a year after, it loses its value.   There are the two main aspect of time value of money:-                                                Future Value (FV):- Its refers to the value of investment or cash flow at a specific point in the future, Given a certain rate of interest. It is calculating by applying compound interest to the present value of money. Example:- Let’s say you have $1000 that you want ...

 Financial Management is that managerial activity which is concern with planning and controlling of the firms financial resources. It is concerned with  acquiring financing and managing assets to accomplish the overall goal of business enterprise . There are the two basic aspect of financial management :-  Procurement of Funds :- Fund cab be obtained from various resources to meet the  funding needs of an organization or individual. Funds procured from different sources have different characteristics in the term of risk, cost and control. The cost of fund should be at the minimum level for that proper balancing risk and control factor must be carried out. Some Sources of funds are  Equity, Debentures, Funding from banking, International Funding. Utilization of Funds   :- Deployment of the of financial resources to achieve the desired result of an organization or individuals. The situation arise where the funds are being kept idle or where proper use of fund...