Difference between revisions of "Time Value of Money"
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| − | + | == What Is the Time Value of Money (TVM)? == | |
| + | The time value of money (TVM) is the concept that a sum of money is worth more now than the same sum will be at a future date due to its earnings potential in the interim. The time value of money is a core principle of finance. A sum of money in the hand has greater value than the same sum to be paid in the future. The time value of money is also referred to as the present discounted value.<ref>[https://www.investopedia.com/terms/t/timevalueofmoney.asp Time Value of Money Explained with Formula and Examples]</ref> | ||
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| + | ==See Also== | ||
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| + | ==References== | ||
| + | <references /> | ||
Revision as of 18:31, 14 December 2022
What Is the Time Value of Money (TVM)?
The time value of money (TVM) is the concept that a sum of money is worth more now than the same sum will be at a future date due to its earnings potential in the interim. The time value of money is a core principle of finance. A sum of money in the hand has greater value than the same sum to be paid in the future. The time value of money is also referred to as the present discounted value.[1]