Time Value of Money

“The time value of money (TVM) is the idea that money available at the present time is worth more than the same amount in the future.”

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Anytime

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Online

Cost

Free

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Description

The time value of money (TVM) is the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. TVM is also referred to as present discounted value.

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