2. Loan advertisement. For example, peer-to-peer lending or offline lending, agree on the principal of the loan, and use the loan interest rate to repay the principal and interest at a specified time.
3. savings policy advertisement. Common savings policy advertisements calculate the time value of currency compound interest.
Extended data:
Reasons for the time value of money:
1. The time value of money reflects the scarcity of resources.
Economic and social development consumes social resources, and existing social resources constitute existing social wealth, and future material and cultural products created by using these social resources constitute future social wealth.
Because social resources are scarce and can bring more social products, the utility of commodities now is higher than that of future commodities.
Under the condition of monetary economy, money is the embodiment of commodity value. The present money dominates the present goods and the future money dominates the future goods, so the value of the present money is naturally higher than that of the future money.
The market interest rate is a reflection of the average economic growth and the scarcity of social resources, and it is also a standard to measure the time value of money.
2. The time value of money is an inherent feature of currency in circulation under the credit currency system.
Under the current credit currency system, the currency in circulation consists of the base currency of the central bank and the deposits derived from the commercial banking system.
Therefore, currency depreciation and inflation have become common phenomena, and the value of existing currency is always higher than that of future currency.
Market interest rate is a reflection of loanable funds's situation and inflation level, and reflects the degree to which the value of money has declined with time.
3. The time value of money is a reflection of people's cognitive psychology.
People always have a strong perception of existing things and a vague understanding of future things. There is a general psychology that people pay more attention to the present and ignore the future.
Today's money can dominate commodities to meet people's real needs, while future money can only dominate future commodities to meet people's uncertain future needs.
Therefore, the value of the current unit currency is higher than that of the future unit currency. In order to make people give up circulating money and its value, they must pay a certain price, and interest rate is this price.