The Time Value of Money Explained
About this video
Unlock smarter money decisions! Discover the Time Value of Money: why $100 today beats $100 next year. Essential finance insights for everyone.
Try the AI TikTok Video Generator
Create your own version in minutes
Video Transcript
Full text from the video
Here’s why a hundred dollars today is worth more than a hundred dollars next year.
It’s called the Time Value of Money, and it’s one of the simplest ideas in finance.
First, money today can grow. If you invest a hundred dollars
at five percent, next year it becomes a hundred and five dollars. That’s called future
value — your money literally turns into more money over time. But it also works
the other way. If you need a hundred and five dollars next year, and the rate is
five percent, that’s only worth a hundred bucks today. That’s the present
value — we discount future money because it’s not as valuable now. And inflation makes
Most Upvoted Videos
Most Viewed Videos
Rehman Dakait Full Song & Dance Video
Rehman Dakait Full Song & Dance Video
Cleopatra’s Lost Tomb Mystery
Cleopatra’s Lost Tomb Mystery
Eternal Bloom
Cleopatra’s Lost Tomb Mystery
शिव और कृष्ण की भक्ति गीत
Cleopatra’s Lost Tomb Mystery
Roblox Frustrations: A Gamer's Rant
Roblox Frustrations: A Gamer's Rant
Duarte e as Contas Esquecidas
Genug: Das Volk zieht die Grenze
We Are Charlie Kirk
Roblox Frustrations: A Gamer's Rant
Cleopatra’s Lost Tomb Mystery
Angels Sang to the New King
240,909+ Short Videos
Created By Over 14,258+ Creators
Whether you're sharing personal experiences, teaching moments, or entertainment - we help you tell stories that go viral.