Understand why↗
$1000 today is worth more because it has greater purchasing power. Money available now can be invested to earn interest, growing to more than $1000 in the future.
Conditions: Assumes positive interest rates and/or inflation.; Comparison is between the same nominal amount at two different times.
5:00 – 5:08Watch this moment ↗
$1000 today is worth more because it has greater purchasing power. Money available now can be invested to earn interest, growing to more than $1000 in the future.
Conditions: Assumes positive interest rates and/or inflation.; Comparison is between the same nominal amount at two different times.
5:00 – 5:08Watch this moment ↗