Originally Posted by
wally24
Skyhigh, you argument lacks one key point.
If you are going to talk "time value of money", then please do it correctly. You have to discount that 1,300,000 figure back to the present value. A dollar today is not worth a dollar tomorrow. In other words, that 1.3 mil is worth a lot less in today's money standards. It depends on the discount rate.
Skyhigh is correct. The time value of money is based on the concept that a dollar today is worth
more than a dollar tomarrow. If you had a dollar today you can invest it and make some interest, you cannot do that if you don't have a dollar today. The future value of 150k at 6 percent for 35 years is north of 1.6 million.