Time value of money (TVM) is the idea that money available at the present time is worth more than the same amount in the future, due to its potential earning capacity. The core principle of finance assumes, given that money can earn interest, any amount of money received sooner is worth more than the same amount of money received later. In other words, a dollar today is worth more than a dollar tomorrow because you can invest the money the sooner you get it.
The Time Value of Money self-study module guides learners to understand that money has a time value attached to it and how the time value of money relates to interest rate, debt management, and investment.
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