alt Hacker NewsThe $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.
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danielmarkbruce • last Wednesday at 1:01 AM
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.
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saagarjha • last Wednesday at 8:02 AM
She
He's explaining the time value of money but uses an example that accrues interest before any time has passed?