The time value of money refers to:

a. personal opportunity costs such as time lost on an activity.

b. financial decisions that require borrowing funds from a financial institution.

c. changes in interest rates due to changes in the supply and demand for money in our economy.

d. increases in an amount of money as a result of interest

Question

Social Studies

James Burns

25 April, 17:25

The time value of money refers to:

a. personal opportunity costs such as time lost on an activity.

b. financial decisions that require borrowing funds from a financial institution.

c. changes in interest rates due to changes in the supply and demand for money in our economy.

d. increases in an amount of money as a result of interest

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Answers (1)

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Shawn Cole · Answer 1

The time value of money (TVM) is the idea that money available at the presenttime is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, providedmoney can earn interest, any amount of money is worth more the sooner it is received.