How to calculate the time value of money


Problem:

We learn how to calculate the time value of money and why it is an important equation. It is fairly certain that this equation will become relevant in our lives. Drawing on your personal experience and/or future expectations, come up with an example where the time value of money would be important to you. Develop the values, draft the scenario and work out the equation in your answer. How would your answer change if interest rates skyrocketed 3 years from now?

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Finance Basics: How to calculate the time value of money
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