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What is the time value of money | By Wall Street Survivor

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So over time, your money actually makes money. This is the key to the time value of money. For more investing concepts made easy, discover free courses at http://courses.wallstreetsurvivor.com
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Text Comments (4)
VIDesignStudios (1 year ago)
5% is an old dream, now the national average of interest on savings accounts is only 0.08 percent. Inflation rises around 6% per year, so with your MagicBank she would stay at neutral by waiting a year. She should take it upfront, pay off any debts first (interest on debt + 6% inflation = true loss), then invest the rest in microloans. Or buy an island in a country with less inflation.
Joachim Larsen (2 years ago)
You just forget to factor in that at the moment the interest you get in banks is lower then the inflation. That means that for example the prices rises 2% but you only get 1% interest and the therefor your money became 1% less worth.
Burhansyla (3 years ago)
A dollar today is worth more than a dollar tomorrow. : 0:13
Nick (1 year ago)
i knew that didn't sound right

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