The value of a Certificate of Deposit (CD or GIC) with a fixed term will be determined assuming it is reinvested at its maturity."

3. Financial implications of TVM

Based on approximate calculi of future values of the money, the population will regulate their investments in order to achieve significant profits. Their actions will have numerous influences upon various work domains and industries suck as banking, insurance industry, governmental actions or retirement plans.

The activities of commercial banks are directly influenced by the value of money in the sense of increase or decrease of the realized transactions with the customers, both private individuals as well as corporate bodies.

When the foreseen future value of the money is expected to increase, so will the deposits made by clients to the banks. Bank customers will deposit more money into their saving accounts in the hope that they will register higher profits due...
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