Do You Make Financial Decisions Without Considering The Time Value Of Money?

When you make any investment decisions, you think about returns. So how much will you get after a certain period of time? At first, it looks good to have a certain figure as a return.

But if you don't consider the time value of money, you may make the wrong financial decision. For example, you will get $5000 as a return after 5 years. Will you get the same value of $5000 as you get today? No, you will not. $5000 in your pocket will be worth more today. If you convert the future amount of $5000 into the present amount, you can see the actual figure. Likewise, if you think you will need $5000 after 10 years. Will you be able to do the same thing with $5000 that you can do now? No, you will not. You need to find out the future value of $5000 to do whatever you want to do after 10 years.

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Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about lifestyle, finance, martial arts, and digital marketing. I'm glad to meet amazing people all over the world.

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