The time value of money calculations found in the material covered the core math related to the concept. Yet, the time value of money is explicitly connected to borrowing and saving. Knowing how to determine the time value of money by calculating present and future value can help with decisions that can affect a business’s long-term financial health.
In your discussion this week, consider the time value of money content covered in the instructor video, and discuss the following:
Describe how the time value of money impacts the terms of a business loan.
Explain how the time value of money plays a factor in long-term financial decisions.
Consider your peers’ responses and discuss the ways in which organizations can benefit from knowledge of the time value of money.
Share the choices you would make as a financial manager considering the time value of money.