Time value of money: Understand the time value

Understand the time value of money (TVM), including key concepts, formulas, compounding, inflation impact, and real-world business and investment examples. Read about the time value of money , including its definition, how it works, and examples. Also, learn about concepts related to it. Time Value of Money (TVM) states that money received on the present date carries more value than the same amount received in the future. Learn how to calculate the present and future value of money based on its potential earning capacity and inflation. See how TVM affects financial decisions, such as investment, loan, and pricing.