Time Value of Money

Editorial Note:

The Concept of Time Value of Money

Time Value of Money is an intuitive concept that means that money today is worth more than an identical sum in the future.

Overview

  1. Time Value of Money: definition and concept
  2. TVM factors: opportunity cost and risk
  3. Real-life example
  4. Present value and future value
  5. Basic TVM formula
  6. Future value and power of compounding

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