Phrases with «time value of money»

The phrase "time value of money" means that money has more value over time. It means that a dollar today is worth more than a dollar in the future because money can be invested or earn interest over time. So, the concept tells us that receiving money earlier is preferable to receiving the same amount of money in the future. Full definition

Sentences with «time value of money»

  • The principle of time value of money states that the value of money available at the present time is worth more than the same amount in the future due to its potential earning capacity. (policybazaar.com)
  • You probably have come across time value of money in one your finance classes or at least have a basic understanding of the idea. (robergtaxsolutions.com)
  • Most time value of money formulas require some interest rate figures for each point in time. (investopedia.com)
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