Relativity of Time and Money

timemoneyvalue


Compound Interest is the 8th wonder of the world. He who understands IT, earns IT… He who doesn’t… Pays IT

 

 

 

Albert Einstein once quotes “Compound Interest is the 8th wonder of the world. He who understands IT, earns IT… He who doesn’t… Pays IT.”

Quite interesting isn’t it? But the fact is many barely knew IT, as IT exists in your savings, your daily expenditure via credit card, your loans, or mortgages. You might already fall trap to IT and pay the EXTRA without knowing IT!

Money, interest and time are all interrelated, as they are relatives to each other, if you understand and use it properly, this wonder of compound interest will transform your hard-earn money into a highly powerful income-generating tool. We will explore what exactly is Time Value Money, and compounding effect, and finally the mathematical formulation of TVM.