Talk about the time value of money
Time value calculations also need to be considered when you take out loans like mortgages and car loans. These loans often have interest payments that are spread over time. By understanding how the interest rate & loan duration affect the amount due upon repayment (i.e., total payment amount & monthly instalments) consumers have better control over their finances & know exactly what they’re getting into before committing themselves.
In conclusion, understanding the fundamentals behind time value of money calculations can help provide greater insight into various financial decisions – allowing individuals/businesses to make more informed choices when it comes to investments, loans etc.