Finance 101: Time Value of Chanel
AW: What if for your birthday I give you an empty bag from Saks with the promise that I will fill it with a Chanel bag next year.
IY: Well, a Chanel bag today is worth more than a Chanel bag tomorrow so you would have to give me interest. And what if we break up? Its lose-lose for me.
AW: But its win win for me. If we break up I don't have to buy you a bag ever and if we don't break up I only have to buy you one present in two years.
IY: No. Where did you get this idea? Stop reading.