What Is the Time Value of Money (TVM)?

What Is the Time Value of Money (TVM)?

The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum 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 sometimes referred to as present discounted value.

To learn more about time value of money click here.

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