Time Value of Money
I was cleaning out my email inbox and found this email from way back in July: Hello, I have a question. If a person owed money to someone in 1998, but did not repay that amount until 2010, how can he calculate what amount to return now (in 2010) considering that much inflation has taken [...]
Check out this quote from a recent Wall Street Journal article by Andrea Coombes: …about 40% of workers in their 20s and 30s said they had cashed out their 401(k)s or 403(b)s when they switched jobs, according to an online survey of about 1,200 people conducted in January for Fidelity Investments by CMI, a research [...]
With the last post, we figured out that four years of college was expected to cost $105,655. Now we need to know how to reach that goal.
It is amazing how the math we all thought was useless back in high school is really pretty useful today. Understanding mathematical concepts is very important in understanding personal finance. It is also very liberating to be able to do different “complex” calculations with the aid of a spreadsheet.