Describe how the time value of money impacts the terms of a business loan.

The time value of money is explicitly connected to borrowing and saving. Knowing how to determine the time value of money by calculating present and future value can help with decisions that can affect a business’s long-term financial health. In your discussion this week, consider the time value of money content covered in the instructor video and in Connect, and discuss the following: Describe how the time value of money impacts the terms of a business loan. Explain how the time value of money plays a factor in long-term financial decisions.