Question: 1. Why is it necessary to know about time value of money concepts? Why cant you just make judgments about future cash flows based purely

1. Why is it necessary to know about time value of money concepts? Why can’t you just make judgments about future cash flows based purely on the size of the cash flows?.

2. Your bank offers a savings account that pays 3.5% interest, compounded annually. How much will $500 invested today be worth at the end of 25 years?

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