Time Value of Money
Noun
US
/taɪm ˈvæljuː əv ˈmʌni/
UK
/taɪm ˈvæljuː əv ˈmʌni/
US
/taɪm ˈvæljuː əv ˈmʌni/
UK
/taɪm ˈvæljuː əv ˈmʌni/
The concept that money available today is worth more than the same amount in the future.
Time Value of Money is a fundamental concept used in financial statements and business planning.
Also known as: TVM, Money Has Time Value. Closely related to Present Value, Future Value.
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Time Value of Money - key concept in Basic Finance.
Investment; Capital budgeting; Loan pricing
Applied in Basic Finance contexts: Investment; Capital budgeting