Adollar in hand today is worth a dollar to be received in the future because if you had it now you could invest that dollar and interest. of all the techniques used in finance, none is more important than the concept of time value of money (tvm), also called analysis. time value analysis has many applications including retirement planning, stock and bond valuation, loan amortization, and capital budgeting analysis. time value of money uses the concept of compound interest rather than simple interest.

Some disadvantages to leasing a car is that you are counting on someone to give you money every week or month depending on what you decided and if they don't have all of it well what if you needed that money now you as well have to pay not in full. a disadvantages to purchasing a new vehicle is if it is used then not all the time will absolutely everything work. its almost like a trail and era. although if it is a new car they will try to though all these specials and deals at you in your lease and it can be very overwhelming if you are not use to it.