Time value of money presentation
In addition, having a basic understanding of the fundamentals of finance enables investors to better plan for retirement or other financial goals since they now understand potential risks associated with each decision. By taking into account the effects of compounding and discounting, individuals are able to maximize their earnings while minimizing risk.
Overall, understanding the time value of money is key for any successful investor. Not only does it give people greater control over their finances but it also provides insight into how changing economic conditions could affect future performance. By familiarizing themselves with this concept, investors have a much better chance at achieving their desired financial outcomes in both the short-term and long-term.