Time Value of Money is a financial/investment principle that states that a dollar today is worth more than a dollar tomorrow.
Why? Because a dollar today can be invested and generate a return, while a dollar in the future loses some of its value due to inflation and missed investment opportunities.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Time Value of Money is a financial/investment principle that states that a dollar today is worth more than a dollar tomorrow.
Why?
Because a dollar today can be invested and generate a return, while a dollar in the future loses some of its value due to inflation and missed investment opportunities.
This concept is very important and should be explained to everyone in high school.. #GateNovTransparencyReportReleased