ABSTRACT
Time is money. But it is also true that money is time, a dollar now is worth more in the future, and a future dollar is worth less now. As money percolates through most of our daily decisions. This chapter provides an understanding of how money and time work together. It discusses the interest rates for principal amount of money, and presents a comparison of simple and compound interests. The chapter describes the concept of probability and its application in lottery and in real life. It also includes a discussion on risks associated with the investment of money, as well as review exercises related to the interest and probability concepts.
