Time value of money (TVM)

Time value of money (TVM),

Definition of Time value of money (TVM):

  1. Price put on the time an investor or lender has to wait until the investment or loan is fully recouped. TVM is based on the concept that money received earlier is worth more than the same amount of money received later, because it can be employed to earn interest over time. Computed as compound interest.

  2. The time value of money draws from the idea that rational investors prefer to receive money today rather than the same amount of money in the future because of money's potential to grow in value over a given period of time. For example, money deposited into a savings account earns a certain interest rate and is therefore said to be compounding in value. .

  3. The time value of money (TVM) is the concept that money you have now 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.

How to use Time value of money (TVM) in a sentence?

  1. The number of compounding periods during each time frame is an important determinant in the time value of money formula as well.
  2. Being able to wisely spend the time value of money will help your business run much more efficiently and smoothly.
  3. Depending on what your current finances are a stock may not be worth the time value of money if you cant afford to wait.
  4. Time value of money is based on the idea that people would rather have money today than in the future.
  5. Given that money can earn compound interest, it is more valuable in the present rather than the future.
  6. The formula for computing time value of money considers the payment now, the future value, the interest rate, and the time frame.
  7. His broker was very excited about the latest money-making opportunity, but Clifford was an impatient man and wondered if it made sense for him in terms of the time value of money attributable to him.

Meaning of Time value of money (TVM) & Time value of money (TVM) Definition

Time Value Of Money (TVM),

Time Value Of Money (TVM) Definition:

  1. Time Value Of Money (TVM) means, Time Value Money (TVM) is the idea that the money you have now is worth more than you have because it has the potential to generate money in the future. According to the basic principle of this financing, any amount received in advance will be worth more, as long as it generates interest. TVM is sometimes called current value.

    • The value of money over time is based on the idea that people will have more money today than in the future.
    • Because money can generate compound interest, it is more valuable than it is today.
    • The formula for calculating the value of money over time takes into account instant payments, future prices, interest rates and duration.
    • The number of interest periods in each period is also an important determinant of the time value money formula.

Literal Meanings of Time Value Of Money (TVM)


Meanings of Time:
  1. The constant and unlimited development of all existence and past, present and future events.

  2. Time is measured in hours and minutes after midnight or noon.

  3. Time allotted, available or used.

  4. Became an example or event of an event.

  5. Expresses the number (after the number).

  6. The rhythmic style of a musical work is expressed by a move.

  7. Plan, plan or arrange when (something) should or should happen

  8. Measure the time it takes to perform this action (action or activity, or who did it).

Sentences of Time
  1. Travel to time and place

  2. It is half past nine.

  3. We need more time

  4. This is my first time in debt

  5. Three times five out of fifteen

  6. Waltz time melodies

  7. The first race on the track is scheduled for 11:15 p.m.

  8. We took the time and got a certificate that matched our speed

Synonyms of Time

hour, time, fix, measure, put a stopwatch on, flow, set, rhythm, instance, timetable, book, arrange, programme, schedule, count, bill, moment, juncture, meter, fix up, pulse, point, fix a time for, set up, plan, prearrange, organize, line up, slot in


Meanings of Value:
  1. Respect that something should be worth its importance, value or usefulness.

  2. Principles or principles of a person's behavior decide something important in life.

  3. A numerical quantity is called an algebraic term, quantity, quantity or numbers.

  4. Valuing monetary value (something)

Sentences of Value
  1. Your cooperation is invaluable

  2. Rhythm values ​​are fourth, eighth, and fourth notes, and only the basic finger pattern is already used in the course.

Synonyms of Value

standards of behaviour, morals, avail, importance, assay, favourite, use, treasured, effectiveness, advantage, precious, utility, set a price on, worth, dear, worth its weight in gold, price, significance, cost out, good, cost, assistance, sense


Meanings of Of:
  1. Shows association between two entities, usually an association.

  2. It shows the relationship between the address and the historical landmark.

  3. Express the relationship between a general type or type and the specific items that fall into this category.

  4. Derived from or associated with a verb.

  5. Where the phrase header is a predictive adjective.

Synonyms of Of

in, caused by, of, made by, by, from, done by, carried out by


Meanings of Money:
  1. The current means of exchange is simultaneously in the form of coins and banknotes, coins and banknotes.

Synonyms of Money

ready money, hard cash, cash