Comment by isubkhankulov
1 month ago
The $100 does become a liability on your balance sheet. You’re right that interest doesnt and is an expense.
In the context of this post, does it matter? He’s not teaching bookkeeping here. He’s explaining the time value of money.
He's explaining the time value of money but uses an example that accrues interest before any time has passed?
He's explaining a bond, ie. it's a promise that you'll get back X+Y in Z years if you give up X now.
It matters because it screams "I don't actually know what I'm talking about". And it's not just a bookkeeping error. It's a conceptual error. It's a complete misunderstanding of the time value of money.
As such, it's a self indulgent piece of writing, not a helpful one.
Seems a little harsh and unkind over what's just a fun article. It's not a news publication or a textbook, it's Phrack, lol. I thought it was neat.
It's a blog post. And the criticism is on a message board... It's par for the course.
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