time value of money

Definitions

Construction

  • The time-dependent value of money stemming both from changes in the purchasing power of money (that is, inflation or deflation), and from the real earning potential of alternative investments over time.
  • The cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds.
  • The expected interest rate that capital should or will earn.

Business

  • acronymTVM
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