An understanding of the time value of money is a critical contributing factor to successful investment and financing decisions. Write an academic paper of between 750 and 1475 words (3 to 5 pages) explaining the time value of money concept and its relationship to business and management as well as personal life.

Your paper should also include discussion on:

Differences between present value and future value.
Differences between present value of ordinary annuity and present value of annuity due.
How the time value of money can be used by management to maximize return and reduce risk.
Be sure to:

Follow accepted research approaches and citation format (APA style).
Convey your understanding of the readings and concepts and their application to the topic.
Write in an organized and coherent way.
Check for and correct spelling, sentence structure, and grammatical errors.