Time value of money on 30/08/2021 by montex000

Hello guys ,hope everyone is doing well and good and today have brought a good thing to you'd that can either boast or transform your life,and this is the "TIME VALUE OF MONEY"

The time value of money is a basic financial concept that holds that money in the present is worth more than the same sum of money to be received in the future.

This is true because money that you have right now can be invested and earn a return thus creating a larger amount of money in the future

The time value of money can also be referred to as "net present value"
This can also be affected by inflation.and about inflation,it explains the concept of time value of money in that this erodes the value of money and therefore the purchasing power of money.it is best exemplified by the prices of commodities such as gas or food
For example ,today you can buy a full basket of tomatoes at only 2000 uganda shillings but you can't use that money tomorrow to buy the same quantity of tomatoes.

Basing on land ,land is an asset but it doesn't depricate but it increases value.for example you can buy an acre of land 100*100 at 4millions but in the future when you sale the land today for about 7millions which means the value of money changes.but attached with some risks.

FV=PV×1+1/r.this can basically leads to a perfect outcome on solving the time value of money concept.
Therefore if you have money invest it in somewhere so that you earn a return in future, remember education is the best investment.
@montex000
Stay safe and take care
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