# Episode 124: The Time Value of Money: Why Your Money is Worth Less and Less

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w x (1 year ago)
Amazing explanation!!
Mohab Omar (1 year ago)
Thank you so much for this detailed and simplified way of explaining, i just wonders if this inflation rate is constant, and does it changes from country to other
andre (3 years ago)
Very good explanation... easy to understand..Thank-you
+andre Thank you Andre! I'm glad that you enjoyed it.
rajat79foryou (3 years ago)
Sir, While calculating FV for given variables like interest rate, period and Present Value  can inflation rate may be subtracted from the rate of interest to arrive at the FV taking inflation into account.For e.g. r=7%, Inflation=0.8% .Can we substitute 6.2% as the effective interest rate to arrive at the FV. Thanks for your informative lesson.
+rajat79foryou Absolutely! That would be what's called a "real interest rate", which reduces the nominal interest rate by the inflation rate.
Why does money lose value over time? Find out in: The Time Value of Money.
Thanks! Of course. I use Sketchbook Express, which allows me to re-create kind of a digital blackboard, in conjunction with a Wacom Bamboo tablet for writing. Then I use a screen-capture software called Screenflow, which is for Mac to actually capture the writing and do some basic editing. Hope this helps!
Glad to hear that! Thanks for watching.
tessy (4 years ago)
Interesting,i enjoyed it
Glad you enjoyed it! Thanks for watching.
Glad it was of help to you Sydnee. Thanks for taking the time to provide feedback as well.
Sydnee (4 years ago)
This video really helped me understand the concept. I've watched quite a few but always end up confused. My only criticism is the narrator speaks too quickly and rushes through the calculation. Overall best video on this topic.