time value of money

time value of money definition - finance
The concept that a dollar in hand today will be worth more than a dollar in the future. The time value of money is typically thought of in terms of the amount of interest that could have been earned had money been invested in an interest-bearing account instead of not investing it.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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