Time Value of Money

Overview


Time value of money is important because it helps people save for retirement or any other investments and manage and get the most out of their money.

It is an important concept to investors because money on hand today is worth more than money promised in the future.

Present Value

How much money do you need to invest today (lump-sum) to achieve a good retirement plan? What does worth more, one million today or two million in ten years? Check this video to find the answers.

Annuities

How much money do you need to invest regularly to achieve a good retirement plan? How much will you pay on your mortgage or loan? Check this video to find the answers.

Future Value

If you start saving money today, how much will you get in the future? It looks easy, but it is harder than you think. Watch the video and figure out why.

Amortization Schedule

You will pay interest plus principal when you get a mortgage or a loan. How do you find how much interest are you paying? How much of the principal are you amortizing after each payment? And how much is your current outstanding balance? You can find all the answers if you know how to create an Amortization Schedule.