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Time value of money | Interest and debt | Finance & Capital Markets | Khan Academy

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Why when you get your money matters as much as how much money. Present and future value also discussed. Created by Sal Khan.

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Finance and capital markets on Khan Academy: If you gladly pay for a hamburger on Tuesday for a hamburger today, is it equivalent to paying for it today? A reasonable argument can be made that most everything in finance really boils down to “present value”. So pay attention to this tutorial.

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24 comments
@chrissystewart6268

I need to know this stuff very important

@danielmaluenda9731

I think time is invaluable, meaning nothing can value as much as time in its infinite scope (just a cultural opinion of mine) in any given week you could make a ridiculous life changing sale, or find inspiration to the next big brilliant business idea that pulls through. Anything could build up to, through time. But I guess a big point of money is to, overtime, as a society, value things as we see them (supply and demand). I bet this too is why then interest rates are so studied by the Fed, because whatever interests over time in an economy, defines spontaneously what our society values the future as (and money flow over time) – monetarily. Without that in mind, I bet that’s what happened to banks and individuals in the 1920s, too much trust in our system without thinking of how an economy can flow over time, thinking the now rather with eternalperspective, so there was a huge spill that broke our system (our trust)
These are just thoughts I had running in my head while watching the video

@unfortunateson7464

You're way to smart to be human. Just saying…

@markrodriguez3306

You can start a business at any given time but you can't grow nor get to a standard level without investing.

@medalsixdhar4445

Medalsix Dhar
Roll No:148(morning)

@lostheroes8704

What if we find the present value of $65 through this way: First find 10% of $65 and then subtract that amount from $65.
10% of $65 : 10 x 65 /100 = 6.5
65 – 6.5 = 58.5
What is wrong with my way of solution?