2 ms·
Time value of money: they don't just have to collect the original amount, but the interest they would have gotten from putting the money somewhere else. So even
by alextgordon 11y ago
Time value of money: they don't just have to collect the original amount, but the interest they would have gotten from putting the money somewhere else. So even a lifetime may not be enough time if the borrower cannot keep up with interest.
- nightski 11y agoExcept the money they loan is generally created on the spot. Not sure they could simply invest it elsewhere.