Explain the concept of time, value of money, and give some examples Research Paper

Explain the concept of time, value of money, and give some examples. Explain difference in ways to calculate FTEs and explain - Research Paper Example For instance, you can invest your dollar for one year at a 6% annual interest rate and accumulate $1.06 at the end of the year.   You can say that the  future value  of the dollar is $1.06 given a 6%  interest rate  and a one-year  period. It follows that the  present value  of the $1.06 you expect to receive in one year is only $1. A key concept of TVM is that a single sum of money or a series of equal, evenly-spaced payments or receipts guaranteed in the future can be converted to an equivalent value today.   Conversely, you can determine the value to which a single sum or a series of future payments will grow to at some future date. You can calculate the fifth value if you are given any four of: Interest Rate, Number of Periods, Payments, Present Value, and Future Value.   FTEs FTEs are basically the full time equivalents and help in analyzing the work done in hours according to the number of laborers employed. Efficiency indicators for benchmarking frequently require a benchmarking health unit to provide the number of FTEs involved in a particular activity. This is not a problem where programs are specialized, i.e. where full and part time staff is assigned to specific activities.