Time Value of Money- Macroeconomics

Should you take $100 today or $200 in two years? Mr. Clifford expalins how to calculate the future value and the present value of money.

[MrMasterDebate]

Dude i know you get paid for these videos, so its not entirely out of just the goodness of your heart, BUT THANK YOU SO MUCH FOR PRODUCING ECON VIDEOS. Legit ive been using them all year when my professor couldnt explain any of the concepts well. You have made understanding this stuff so much easier !

[zhaungsont]

0:55
Jacob: "and for 3 years it will be cubed."
*my dumb ass: "ah, yes. This is pretty cute."*

[barryredman]

I'm still tying to figure out where this guy found a bank to pay him 10% on his deposits.

[kylavanwingerden]

Your videos are absolutely amazing! You have such a gift for teaching. Thank you!

[KrisMavericko]

presentation was concise, articulate & clear. thank you!

[leopard]

Time and money is related.
General relativity by Mr. Clifford.

As space and time is related.
General relativity by Einstein.

[StephenGillie]

How much of this would reverse with negative interest rates?
Assuming -1.5% interest:
The PV of $100 in 1 year is $101.52, with a price (negative interest) of $1.52
The PV of $200 in 2 years is $203.05, with a price (negative interest) of $3.05.

Assuming a safe deposit box at a local bank costs $100 a month, how much money would you need for that to be cheaper than the negative interest rate? It's another way the rich get richer, where having a certain amount of money unlocks additional money or benefits - not through spending, but simply through having. (Bonus question: How big would that safe deposit box need to be to hold that much money, in $100s?)

[adnansomani]

As many users like myself view these videos on phones or tablets. Can you put the link in the description as well, to the suggested videos as we don't get annotations.

[amornchotsingh]

Why do we use Interest rates in determining Present Value and Future Value? Is it checking the opportunity cost of not depositing money in the bank?

[afonsoluz]

you are incredible, thank you so much

[RogeSaint]

I know I can pause the vid and re-watch but slow down a little - it becomes noise at least for me. This prevents me from committing the time to watch future videos of this nature. From what I caught it sounds like useful information. I will say thanks for sharing but I as well as others would have gained more if you slowed a little.

[alanuseibeh]

The interest rate is different than the inflation rate which should be considered into the equation instead of the interest rate. The value of money against this equation is not measured by Interest rate but by CPI instead. thanks

[farahnazart]

but if the present value is 90 why we should take it as the future value is 110 which is more than 90??please answer

[veronicasiller]

Thank you so much more making these videos! You saved my life!!

[k.ganesanganesan]

All higher study students should attend to a paper relates to value of money .

[daraghaznavi]

Ok but what determines the interest rate?

[handsomenubian]

great ..but how to put inflation rate into the equation?

[CalvinMaighan]

Learning this in Linear Algebra not in econ :P

[pt]

If I’m not sure I’ll be alive even after 2 years, I should use it right now

[kenwallin]

I have a question ... what bank do you know that pays out 10% return on deposited money. What you are teaching is true, but disingenuous. NOT any bank gives that level of interest.