Time value of money

The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum 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 sometimes referred to as present discounted value—Read more at Investopedia. Chen, James. “Time Value of Money (TVM).” 25 September 2019