TVM - What’s the Difference? Compounding, Discounting, RRR… #timevalueofmoney #financestudents #TVM

Confused about compounding, discounting, and required rate of return? You’re not alone. In this video, I walk you through three foundational finance concepts that are often misunderstood when students first learn about the Time Value of Money (TVM): 🔹 Compounding – how money grows over time 🔹 Discounting – how future dollars are valued today 🔹 Required Rate of Return – the minimum return investors expect given risk 🎯 Here’s what you’ll learn: Why all three use the I/Y key on the BA II Plus calculator The key differences between compounding and discounting How to calculate each using the financial calculator Real-world examples, including: • LeBron’s Blaze Pizza investment 💸 • Shohei Ohtani’s $700M contract ⚾ • Mega Millions lottery payout 🎰 • Rental property & Airbnb investment returns 🏡 How required rate of return helps you assess investment risk and profitability A sneak peek at how these concepts lay the groundwork for NPV, WACC, and hurdle rates 💡 Whether you're studying for a finance exam, analyzing investments, or trying to understand real estate deals, this video breaks down these terms in a clear and approachable way. 🔔 Subscribe for more tutorials on finance concepts, time value of money, BA II Plus calculator use, and Excel financial functions. 📝 Have a question? Drop it in the comments — I’d love to help or turn it into a future video. 🏷️ Hashtags: #FinanceBasics #Compounding #Discounting #RequiredRateOfReturn #TimeValueOfMoney #BAIIPlus #Investing101 #CFAExam #FinancialCalculator #NPV #PersonalFinance #RealEstateInvesting #FinanceStudents #FinancialEducation #FinanceExplained