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The time value of money - German Nande

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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).

We’ve learned to connect present value of an investment with its future value, based on an investment period and an interest rate. How would you calculate the present value of an investment if you know its future value, its investment period and interest rate?

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About TED-Ed Animations

TED-Ed Animations feature the words and ideas of educators brought to life by professional animators. Are you an educator or animator interested in creating a TED-Ed Animation? Nominate yourself here »

Meet The Creators

  • Educator German Nande
  • Director Franz Palomares
  • Animation Artist Celeste Lai
  • Narrator Addison Anderson

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