Episode 257: The Time Value of Money
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The Subjective Discount Rate in Finance
There's a formula in finance that we use to perform the calculations. And this formula requires that you know what length of time you're talking about and what we call the subjective discount rate. For example, if you've got a 5% subjective discount rate, 20 years worth of Netflix subscriptions is the equivalent of $2,200. So I give you another example. Most of us have Netflix subscriptions, 14 bucks a month, 15 bucks a month with taxes.
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