ABSTRACT
Every day, the purchasing power or value of money changes. It changes because of inflation or because it is invested and earns money. Inflation, which devalues money, takes place when the supply of money increases faster than the availability of goods. An investment can be any number of things — a savings account that periodically pays interest, ownership of a stock that appreciates in value and pays periodic dividends, a company’s investment of capital in facilities that will make a new product, increasing sales and after-tax profits.
