samlissy01 samlissy01

11-10-2017
Social Studies

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what is the time value of money?

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monster0426 monster0426

11-10-2017

The time value of money 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.

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sunypark222 sunypark222

11-10-2017

A time value of money of 8% per year also tells us that receiving $1,080 one year from now is comparable to receiving $1,000. With a time value of money of 8% per year, accountants will state that receiving $1,080 in one year has a present value of $1,000.

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