💰The time value of money involves the concepts of interest, principle, and return on investment.
📈Interest rates reflect the cost of borrowing money and can be stated as a percentage of the principal.
💼Understanding the time value of money is essential for estimating funds needed for retirement.
🔢Time value of money calculations involve variables such as present value, future value, interest rate, and number of periods.
🎰Annuities are fixed regular payments that can be measured at present value or future value.