The time value of money is a financial concept that suggests that a sum of money has a different value today compared to its value in the future. In short, it recognizes that a certain amount of money today is worth more than the same amount in the future due to its potential earning capacity or the opportunity to invest and earn returns over time. The time value of money is a fundamental principle in finance and is used to make decisions about investments, loans, and other financial transactions.
How to calculate it?
