The time value of money is used for many important financial decisions that could affect long$-$term goals. The interest rate you pay on a loan can affect the amount you pay each period.

An advertised monthly lending rate of $9\%$ with an effective rate of $9\mathrm{.}39\%.$ This difference between an advertised rate and the annualized rate is based on finer TVM details that may be overlooked by borrowers. Discuss how you may have used TVM in a recent investment or loan decision and explain the TVM involved in your transaction.

If you have not used TVM in a past financial transaction, what practical TVM application would you expect to encounter in your future? Explain.