The Time Value of Money
There are several important (and powerful) concepts you learned this week: The time value of money, the interest compounding process (Future Value) and in present valuation of future cash flows/income. Given below are two articles on the power of compounding presented in an easy to understand manner. Discuss who benefits from compound interest and why it can be your worst nightmare, if you are on the wrong side of compounding. Based on your understanding of compounding and additional fees that may be charged on a loan what is the difference between the rate of interest on a loan and the effective interest rate. Proctor, C. (2019, Nov 19). Compound interest is either your best friend or your enemy. here’s how to make it work for you. Business Insider Retrieved from https://search-proquest-com.ezproxy.library.berkeley.org/abicomplete/docview/2395878834/fulltext/C8F263C7034541C9PQ/7?accountid=38129 (Links to an external site.) White, B. (2002, 09). Baseball, hot dogs and compound interest. Better Investing, 52, 14. Retrieved from https://search-proquest-com.ezproxy.library.berkeley.org/abicomplete/docview/233331606/fulltext/415598945A2E4742PQ/6?accountid=38129