Comments on the article using your knowledge of time value of money. Describe what is time value of money.

" Time value of money is the idea that money that is available at the present time is worth more than the same amount in the future. This wall street journal article is a great representation of the time value of money because people do realize that they are paying almost $4,500 more in interest alone in an 8-year loan. Most people in this country like to save as much as possible when it comes to loans. So even though you are paying a higher payment per month you are actually saving on not only your total interest cost but also the time you have to pay off your loan. By doing this you can use that money you saved to invest in other expenses in your life. "