This writing assignment explores the personal applications of TVM.

In a 500-word paper using appropriate APA format, explain the concept of the time value of money, including compounding and discounting. Consider how the time value of money applies to your personal life and address the following points:

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 the 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 the time value of money concepts to help you make a better decision. Explain how the time value of money applies specifically to this situation.