Time Value of Money Definition

Below please find a definition of “Time Value of Money”

Time Value of Money: The time value of money is a concept that addresses the fact that the value of money will change over a period of time. According to this concept, a dollar that a person has today is worth a lot more than a dollar that the person might have in the near future. This explanation stems from the fact that the dollar in receipt today can earn interest up until the time the future dollar is received.

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