Time Value of Money - Time Lines

5 important questions on Time Value of Money - Time Lines

What are time lines used for?

To visualize what's happening in a particular problem

What does 'time' stand for?

Periods
Often years, but   it can also stand for quarters or even months.

What do the tick marks represent?

Both the end of one period and the beginning of the next one.
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What is show below the tick marks?

The cash flows
Unknown cash flows are represented by a question mark

What is shown above the tick marks?

The relevant interest rate

The question on the page originate from the summary of the following study material:

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