Daffodil International University
Faculties and Departments => Business & Entrepreneurship => Business Administration => Topic started by: ahad.de on March 19, 2017, 11:44:55 PM
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The world of current financial system is based on the very concept of time value of money. In simple terms, time value of money supports the method of calculating compound interest rates. If there is no interest rate, then the world of finance will not exist. That is the greatest truth. All the financial institutions come under this realm of compound interest. Factoring of compound interests has made it possible to have several subjects under the main subject matter of finance namely corporate finance, financial management, valuation etc. Financial crisis or bubble burst is just another extreme point of compounding. When the compound interest turns from basic to extreme a bubble is formed and like many other things it comes into an end through bursting.
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