From the course: Investment Evaluation

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Time value of money

Time value of money - Microsoft Excel Tutorial

From the course: Investment Evaluation

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Time value of money

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- Y'all, let's face it. Time is money. I think so highly of that cliche turn of phrase. I will park in the farthest away, readily available parking spot instead of waiting for a spot closer to the store. Why? Well, 'cause I'm able bodied and my time is more valuable to me than waiting for a close-to-store parking spot. Now, you don't have to be an extremest like me but you should definitely understand the idea behind the time value of money when it comes to investment. Know that money that you currently have is worth more than the same amount of money in the future. In so many ways, the biggest loss of money you'll incur is due to loss of time. Why? Well, because if you don't put you money to work, it's just gonna sit there and it's gonna cost you big. People, corporations, big banks, they all want your money and they're willing to pay you to borrow it. Let's take a minute now to think about the concept of the time value of money. One of the reasons it's so important to calculate free…

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