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The time value of money - German Nande

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15,412 Questions Answered

TEDEd Animation

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We’ve all heard the phrase “Time is money.” But what do these two things actually have to do with one another? German Nande explains the math behind interest rates, revealing the equation that will allow you to calculate the future value of your money (if you wisely put it in the bank, that is).

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Meet The Creators

  • Educator German Nande
  • Director Franz Palomares
  • Animation Artist Celeste Lai
  • Narrator Addison Anderson
Avatar for Mohamed Bouabdelli
Lesson in progress

What a pity! you think that the value of money just if we put it in bank it's wrong Even if we considered as well where's the concept of inflation here sure the inflation have an influence on the decison of buying the car

Comments are closed on this discussion.

Avatar for Neil Donovan
Lesson in progress

in response to 子瑄 劉 Show comment

I think buying gold is also a good way to fight inflation as the price of gold goes up each year and normally it can cover the rate of inflation, so gold is a good way to save money compared to a bank.


Avatar for 子瑄 劉
Lesson in progress

PU Group3
I think we should find a way to fight inflation .Buying real estate can solve inflation. House prices will rise after inflation.In this way, the loss will be less in comparison


Avatar for 楷聖 陳
Lesson in progress

PU Group10
nflation is getting worse and worse, which means that the value of money is lower. Even if there is a bank, when you take it out, there will be no value deposited at that time.

if have enough money , i think can buy some gold to fight inflation

Don’t have enough money, choose to consider more when buying a car.


Avatar for 張家綱 107
Lesson in progress

PU Group 6
If you only deposit money in the bank, the growth rate of money is very slow . As prices rise, so will the price of cars. The interest rate of fixed deposit is far less than the interest rate of inflation.


Avatar for 第九組 王時軒
Lesson in progress

Depositing money in the bank will only make money impossible to circulate. The more people deposit money, the less money there is in the market. In order to prevent it, printing currency will further lead to inflation.


Avatar for 張育琦 107
Lesson in progress

PU G7
I think it’s not necessary to store it in the bank and change it to investment funds. If it’s stable, it won’t be as risky as stocks.


Avatar for 昱璋 彭
Lesson in progress

PU Group 5
Agree with this view. Maybe we can invest the money instead of depositing it in the bank.Inflation will depreciate money.Otherwise,Inflation reduces people's purchasing power.


Avatar for 陳宇筑 108_1
Lesson in progress

PU Yuchu
I think money can't be put in the bank! The only way to avoid devaluing your money is to spend it in the present.


Avatar for Kelly Linda
Lesson completed

There are lots of factors affect the prices. In this concept, I got the idea that author just ignore the external factors, he/she just want to deliver the idea of "time is money".


Avatar for Michael Howkins
Lesson completed

Inflation is part of the calculation - saving interest rate vs inflation
She might get another bonus in 12 months time, in which case she might have plenty
Alternatiovely she could have obtained a loan

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