Time Value of Money: What is the Time Value of Money?

A dollar today is worth more than a dollar tomorrow, and a million dollars today is worth more than a million dollars paid out slowly over the next ten years. This concept is known as the ‚“Time Value of Money‚” , and it is the foundation of our financial system. In this topic, you will learn what time value of money (TMV) is, how it maximizes the value of your money and protects against inflation, how to make decisions while considering TMV, and how to calculate TMV. By understanding these concepts, you will be able to give the best financial advice to your customers and help them get the most out of their money.