Understanding the future value of money is essential for planning a large purchase like a car to determine the amount to save monthly without the need for a loan.
Understanding the future value of money is crucial when planning for a large purchase like a car because it helps determine the amount to save monthly. By knowing the future value of money, you can calculate how much you need to save over time to afford the car without the need for a loan, thereby avoiding interest payments. It allows you to make informed decisions based on future financial projections and align your savings goals with the anticipated cost of the car.
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