Stranger Times: The Impact of Relativistic Time Concepts on the Time Value of Money

2015 ◽  
Author(s):  
Markus Peter Auer
Keyword(s):  
Time Value Of Money ◽  
Time Value ◽  
Relativistic Time ◽  
Time Concepts ◽  
The Impact ◽  
Value Of Money

Using the Time Value of Money Decision Tree to Calculate an Athlete’s Contract Offers

2017 ◽  
Vol 6 (1) ◽  
pp. 48-57
Author(s):  
B. David Tyler
Keyword(s):  
Critical Thinking ◽  
Decision Tree ◽  
Professional Sports ◽  
Cash Flows ◽  
Discount Rates ◽  
Deferred Compensation ◽  
Time Value Of Money ◽  
Time Value ◽  
The Impact ◽  
Value Of Money

Time Value of Money (TVM) is an essential concept within finance, yet its fundamentals confuse many students. This case offers the TVM Decision Tree to guide students to logical solutions through a step-by-step approach that requires critical thinking about cash flows. Students follow a sport agent as she reviews contract offers for her client. She received four offers with payments structured in wildly different ways, including single payments, growing annuities, and delayed annuities. She must use her knowledge of TVM and the TVM Decision Tree to determine which contract will provide her client with the largest contact in terms of PV. She will find that the contracts with the largest nominal values are not necessarily worth the most in terms of PV. She will also see the impact that different discount rates can have in making her decisions, as well as learn about deferred compensation within professional sports.

scholarly journals Impact of Time Value of Money Theory in Ijarah Sukuk Genuineness: the Case of Bahrain and Malaysia

2018 ◽  
Vol 11 (7) ◽  
pp. 56
Author(s):  
Abdul Rahman Ateeyah Sharif ◽  
Adam Abdullah
Keyword(s):  
Central Bank ◽  
Major Effect ◽  
The Other ◽  
Time Value Of Money ◽  
Time Value ◽  
Conventional Instruments ◽  
Library Research ◽  
The Impact ◽  
Value Of Money

This research is a case study of two Ijarah Sukuk issuances in two countries. One issued by central bank of Bahrain and matured in 2014 and the other was issued by the Malaysian company TSH Resources Bhd and matured in 2017. By adopting library research and document analaysis, this research examines the terms and conditions of both cases based on what has been disclosed in the prospectuses. Accordingly, this study presents the impact of the Time Value of Money (TVM) in these cases and how it differentiates between genuine Ijarah Sukuk and a duplicate-bond Sukuk. The study revealed that there were some Shari’ah non-compliance issues in the implementation of Sukuk concept in both cases in a way it emulates conventional instruments featured as guaranteed-return instruments, which take into account TVM as an essential compenent in calculating its returns. However, such practice has a major effect on the genuineness of Sukuk, in terms of Shari’ah-compliance risk.

The Time Value of Money Concept in Islamic Finance

2006 ◽  
Vol 23 (1) ◽  
pp. 66-89
Author(s):  
Abu Umar Faruq Ahmad ◽  
M. Kabir Hassan
Keyword(s):  
Basic Element ◽  
Islamic Finance ◽  
Purchasing Power ◽  
Conventional Theory ◽  
Modus Operandi ◽  
Time Value Of Money ◽  
Time Value ◽  
Value Of Money ◽  
Future Date ◽  
Rule Out

The time value of money is a basic investment concept and a basic element in the conventional theory of finance. The Shari`ah does not rule out this consideration, for it does not prohibit any increment in a loan given to cover the price of a commodity in any sale contract to be paid at a future date. What is prohibited, however, is making money’s time value an element of any lending relationship that considers it to have a predetermined value. Here, the Shari`ah requires that a loan be due in the same currency in which it was given. The value (i.e., purchasing power) of paper currencies varies due to changes in many variables over which the two parties of a loan contract usually have no control. This study examines possible modus operandi of time valuation according to the Shari`ah’s precepts vis-à-vis the concept of money, and whether any value can be attributed to time while considering money’s value. For this purpose, it investigates the juristic views on such relevant issues as the permissibility of difference between a commodity’s cash and credit prices and an increase and reduction of the loan’s amount in return for early repayment.

How Time Value of Money Topics are Taught in Intermediate Accounting Classes

2005 ◽  
Author(s):  
Sheldon R. Smith ◽  
Steve D. Johnson ◽  
Rick T. Henage
Keyword(s):  
Time Value Of Money ◽  
Time Value ◽  
Value Of Money
Sign in / Sign up

Export Citation Format

Share Document