Time value of money (TVM) or the present discounted value is one of the basic concepts of finance. We know that if we deposit money in a bank account we will receive interest. Because of this, we prefer to receive money today rather than the same amount in the future. Money we receive today is more valuable to us than money received in the future by the amount of interest we can earn with the money. This is referred to as the time value or cash value of money. It is the change in purchasing power of money over time.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). tme value of money (tvm). Retrieved September 30, 2026, from http://smartdefine.org/tme_value_of_money_(tvm)/definitions/1165285 |
| Chicago | Barry Goldsmith. 2010. "tme value of money (tvm)" http://smartdefine.org/tme_value_of_money_(tvm)/definitions/1165285 (accessed September 30, 2026). |
| Harvard | Barry Goldsmith 2010, tme value of money (tvm), Smart Define, viewed 30 September, 2026, <http://smartdefine.org/tme_value_of_money_(tvm)/definitions/1165285>. |
| MLA | Barry Goldsmith. "tme value of money (tvm)" 21 October 2010. Web. 30 September 2026. <http://smartdefine.org/tme_value_of_money_(tvm)/definitions/1165285> |