Explain the concept of time value of money, including compounding and discounting. Consider how time value of money applies to your personal life by addressing the following:

• Describe at least one specific personal situation in the past where the use of time value of money concepts would have helped you make a better decision. Explain how time value of money applies to this situation.
• Describe at least one specific personal situation that you expect to encounter in the future where you will use time value of money concepts to help you make a better decision. Explain how time value of money applies specifically to this situation.
• 250 words