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Investopedia Video: Time Value Of Money Explained

212 ratings | 68256 views
The time value of money is a fundamental concept in finance - and it influences every financial decision you make, whether you know it or not. Learn the basics here.
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Text Comments (14)
Fascist tyrant (2 months ago)
Obviously time is your number one asset even more than money
Dan Ryan (7 months ago)
I think it would help if they added the cost of inflation as another reason why.
Peezy The God (10 months ago)
how is it worth more today? today its worth 1,000,000 and a year from now its worth 1,050,000. its worth more a year from now.
Asha Kanta Sharma (1 year ago)
Perry Bettevy (1 year ago)
What bank in this world offers 5% APY? Average banks pay 0.06% APY and the highest I've ever seen is 1.01%
Dan Ryan (7 months ago)
Perry Bettevy back in the 70s
Sean Dafny (3 years ago)
bitch ass nigga this is a circular ass definition
Abdulmagid Wei shen (4 years ago)
And that's what ruining the economy
allslallsllslllsllall (4 years ago)
What about contingencies, i.e. What if he makes an investment today in a business which collapses in six months. If he took the money a year later he would have avoided this unpleasant and unexpected circumstance.
Shaikh Mohammed Yunus (2 years ago)
cost benefit analysis considers such uncertanities
free80889 (4 years ago)
Time is money. 
Zac Golus (1 year ago)
free80889 Time is money friend!
John White (5 years ago)
Taking inflation in account at say 3% would actually give the "Steve" guy in this example only $20,000. I would advocate money is worth more today because in future more money will be printed therefore decreasing the purchasing power of your dollar. And of course you have to consider how inflation is measured. If inflation were at say 6% Steve would lose money parking it in a bank account paying only 5%. I would say it would be better to put the money into the stock market vs a bank esp today,
bokkenknuser (5 years ago)
Could we include a slight percentage of inflation as well?

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