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Inflation and the Time Value of Money

Valeria has a basic idea of inflation — that $100 today probably will not buy the same amount of goods that $100 will buy next year — but she’s not sure how investing will help. 

Investing takes advantage of compound interest over time, so the more time you invest — in general — the more opportunity your money has to grow. This chart shows the impact of time (and investing early) on the value of money.

Infographic: Time Value of Money Chart

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