The time value of money concept recognizes that money available at different points in time has a different value due to interest, inflation, and investment returns. Interest rates, inflation, and the length of time between payments or investments all impact the relative worth of money over time. Discounting and compounding are methods used to calculate the time value adjustments between sums of money experienced at different points in the future or past.
The time value of money concept recognizes that money available at different points in time has a different value due to interest, inflation, and investment returns. Interest rates, inflation, and the length of time between payments or investments all impact the relative worth of money over time. Discounting and compounding are methods used to calculate the time value adjustments between sums of money experienced at different points in the future or past.
The time value of money concept recognizes that money available at different points in time has a different value due to interest, inflation, and investment returns. Interest rates, inflation, and the length of time between payments or investments all impact the relative worth of money over time. Discounting and compounding are methods used to calculate the time value adjustments between sums of money experienced at different points in the future or past.