Time value of money

INTRODUCTION
Time value of money is an important concept in financial management. It can be used to compare investment alternatives and to solve problems involving loans. Mortgages leaves, saving loans. Mortgages leases, savings and annuities. TVM is based on the concept that a dollar/rupee that you have today is worth more than the promise or expectation that you will receive a dollar/rupee in future.

INTEREST:-

It is the change borrowing money usually stated as the percentage of amount borrowed over a specific period of time.

SIMPLE INTEREST:- It is compounded only on the original amount

borrowed. It is the return on that principal for one time period.

COMPOUND INTEREST:- It is calculated

each period on that original amount borrowed plus all unpaid interest accumulated to date.

NO. OF PERIODS:- Periods are evenly spaced intervals of time.

PAYMENTS:- Payments are series of equal, evenly, spaced cash flows.

PRESENT VALUE:- Present value is amount today that is equivalent to a
future payment.

FUTURE VALUE:- It is the amount of money that an investment with a

fired, compounded interest rate will grow to by some future data.

COMPANY PROFILE
India first life insurance, a joint venture between two of Indias largest public sector banks-bank of Baroda and Andhra bank along with UKs leading risk, wealth and investment company legal and general.And it has tied up with CGGB in Mangalargiri to reach out to its customer in the interland of A.P. The insurable population of the functional area is about 30lakh from which the company expects to cover nearly 3lakh accounts in a time line of 3years. The nature of the tie-up will be throw corporate agencies. Through this tie-up with CGGB,India First will reach over 106 branches across 3 districts.

METHODOLOGY
The collection of data have been carried out about 2 hrs at the CHAITANYA GODAVARI BANK which is located in Mangalagiri. The primary data regarding the deposits was collected from Mr.Nagaraju, who works on the department of the manager.

DATA COLLECTION
The primary data collected from the customer named M.V.Prasana has invested 100000/- for 1 year with of interest 9% . They supported me in completion of the proof attached.

NEED OF STUDY
The calculations demonstrate that time literally is money. Now you have the amount is not the same as it will be in the future and vice versa. It is important to know how to calculate the time value of money. The worth of investments that offer you return at different times. The pre-details of the borrowers before the loans.

CONCEPTUAL RELEVENCE
o Simple interest is an old it is simply a certain percent of money loaned. o Compound interest is new invention on interest. o Money, besides being a measure of value is commodity. o When money is borrowed the rent is called interest. o It you borrow money you pay interest. o The amount of interest of function of time, the value of an amount of money.

SCOPE OF STUDY
The scope of study helps us to know how much money should paid yearly in order to clear the loan.

To apply the theoretical concept to the real world.

Conclusion
From the analysis part it can be conclude that customers have a good respond towards CGGB advance products in Bhopal. CGGBs is in 1st position having large number of customers providing good services to customers.

-BY M.N.V LATHA MBA.Asec R.no:12251027