Time Value of Money

Time Value of Money

Time Value of Money: The basic principle that $1 today is worth more than $1 in the future. That was back in the days when a bank would add money to your savings account at the end of the year and you were therefore better off receiving the dough now than later. These times are gone, but the principle remains that you probably prefer to have money now so you can invest it and have more in the future, or not.

 

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