Exchange Currency

time value of money

The idea that a dollar now is worth more than a dollar in the future, even after adjusting for inflation, because a dollar now can earn interest or other appreciation until the time the dollar in the future would be received. This theory has its base in the calculation for present value.

Related information about time value of money:
  1. Time value of money - Wikipedia, the free encyclopedia
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    This free lesson by EconEdLink covers Interest Rate, Role of Interest Rates.
     
  7. Time Value of Money Calculator
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  8. Time Value of Money Introduction | TVMCalcs.com
    An introduction to the concepts and calculations used in solving time value of money (TVM) problems in finance from TVMCalcs.com.