While I do find it a great article and a good explanation. I do miss the reasoning why that 1K of today has less value within one year. This is due to inflation according to me.
But not every 1K is the same. While life in general gets more expensive, some things do get cheaper. Suppose that I do want to buy a new television today or next year. Due to the rapid improvements in technology. That same TV will for instance be cheaper next year.
As an example. I did buy a new TV last week. If I would have bought the same TV when it was introduced in the beginning of last year, I would have paid 2.5K, due to the fact that I was willing to wait and they do need to get rid of the stock before the new models are launched, I did buy it for around 1.2K.
Feels contradictionary which I am writing at the moment. So yes money will have less value in general within one year, but not for all situations I guess.
RE: Time Value of MONEY - In SIMPLE Terms...