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Username: BobM

Rating:
Guru Stars

Asked to: Apinya Kamon

Date Created: 08 Jan 2018
Category 28
Tag Financial
Question What is the 'Time Value of Money - TVM'?
Advice from Guru
Hello BobM,

The time value of money (TVM) is the idea that money available at the present time is worth more than the same amount 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 referred to as present discounted value.

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