If you have not used TVM in the past financial transactions what practical TVM application would you expect to encounter in your future. (focus on this )
Response briely to this discussion answer:
Sometimes with loans or credit cards, lenders can have hidden fees or add-ons for late payments which may make their advertised rates seem less than the actual annual rate which is charged. It’s important to research and read the small print for this reason when making a decision about lenders or even for savings. I had to do this when applying for a loan. If I had gone with the loan that was offered to me for the items I wanted then I would have paid not only for the advertised rate but also fees and if I defaulted then I would have to pay additional fees and the rate may have increased. I chose to go with the bank where I had an account at the time because my savings deposits would accrue interest and the loan payments would just come out of my account each month. The rate at the bank was also lower than the other rate because I had an account with them.
Prof Carter and Classmates,