COSTS OF TIME AND MONEY

Tracking Costs of Time and Money

Tracking Costs of Time and Money

A dollar you have today is worth more than a dollar tomorrow. The reason is that you could invest the dollar now and have more than a dollar at the specified later date. The longer it takes to get $1, the less it is worth today because you are losing interest on that money. Time value of money is a critical consideration in business and economic decisions. For example, compound interest calculations are needed to determine future sums of money resulting from an investment. Discounting, or the ...