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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).

Could you, using the concepts we learned linking Present Value and Future Value, determine the implied interest rate needed to make a value of $10,000 today (Present Value), equal $11,000 (Future Value), one year from now?

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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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