Parvez, Mahbub (2006): TIME VALUE OF MONEY: APPLICATION AND RATIONALITY AN APPROACH USING DIFFERENTIAL EQUATIONS AND DEFINITE INTEGRALS. Published in: Journal of Mathematics and Mathematical Sciences , Vol. Vol. X, (6 December 2006): pp. 113121.

PDF
MPRA_paper_10794.pdf Download (157kB)  Preview 
Abstract
The time value of money is one of the most important concepts in finance. Money that a firm has in its possession today is more valuable than future payments because today’s money can be invested to earn positive returns in future. The principles of time value analysis have many applications, ranging from setting up schedules for paying off loans to decisions about whether to acquire new equipment. Problems concerning Time Value of Money, which involves calculation of these concepts, are usually solved by algebraic formulae. This paper attempts to solve such problems using differential equations & definite integral techniques and makes a comparison with the results obtained by the traditional method.
Item Type:  MPRA Paper 

Original Title:  TIME VALUE OF MONEY: APPLICATION AND RATIONALITY AN APPROACH USING DIFFERENTIAL EQUATIONS AND DEFINITE INTEGRALS 
Language:  English 
Subjects:  C  Mathematical and Quantitative Methods > C0  General > C02  Mathematical Methods 
Item ID:  10794 
Depositing User:  Parvez 
Date Deposited:  27 Sep 2008 14:27 
Last Modified:  26 Sep 2019 16:02 
References:  • Brigham, Eugene F, Gapenski, Louis, Ehrhardt, Michael C, (2001), Time Value of Money, Financial ManagementTheory and Practice, edition9. • Gitman, Lawrence J, (2004), Time Value of Money, Principles of Managerial Finance, edition10. • Prichett, Gordon D & Saber, John C, (2004), Mathematics of Finance, Introduction to calculus,Mathematics with application in Management and Economics, edition7. 
URI:  https://mpra.ub.unimuenchen.de/id/eprint/10794 