Just another 5 year-old who needs help.
In: Economics
Interest equals principal x rate x time
Put in 100 bucks for 1 year at 5% per year you get $5 interest
Time value of money is this and things like compounding interest, where the interest is incorporated into the principal every y number of months.
It’s literally just calculating how much a sum of money is/was/will be worth at different points in time
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