Time value of money: Difference between revisions

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(TVM). The concept that money held now (or receivable immediately) is worth more than the same amount of money to be received at some later time.
(TVM).  
 
The concept that money held now (or receivable immediately) is worth more than the same amount of money to be received at some later time.
 
The time value of money is reflected in the charging of interest for the use of money, and also in discounted cash flow analysis.
The time value of money is reflected in the charging of interest for the use of money, and also in discounted cash flow analysis.


== See also ==
== See also ==
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* [[Interest]]
* [[Interest]]
* [[Present value]]
* [[Present value]]

Revision as of 14:56, 14 August 2013

(TVM).

The concept that money held now (or receivable immediately) is worth more than the same amount of money to be received at some later time.

The time value of money is reflected in the charging of interest for the use of money, and also in discounted cash flow analysis.


See also