Understand why↗
Money is worth more now because of the time value of money. A dollar today can be invested to earn interest, growing to a larger amount in the future.
Conditions: Assumes positive interest rates or investment opportunities.; Assumes inflation or opportunity cost exists.; Comparison is between the same nominal amount at different times.
4:20 – 5:00Watch this moment ↗
Money is worth more now because of the time value of money. A dollar today can be invested to earn interest, growing to a larger amount in the future.
Conditions: Assumes positive interest rates or investment opportunities.; Assumes inflation or opportunity cost exists.; Comparison is between the same nominal amount at different times.
4:20 – 5:00Watch this moment ↗