DEFINITION of 'Time Value of Money  TVM'
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. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received.
Also referred to as "present discounted value".
INVESTOPEDIA EXPLAINS 'Time Value of Money  TVM'
Everyone knows that money deposited in a savings account will earn interest. Because of this universal fact, we would prefer to receive money today rather than the same amount in the future.
For example, assuming a 5% interest rate, $100 invested today will be worth $105 in one year ($100 multiplied by 1.05). Conversely, $100 received one year from now is only worth $95.24 today ($100 divided by 1.05), assuming a 5% interest rate.
VIDEO

Net Present Value  NPV
The difference between the present value of cash inflows and ... 
Interest Rate
The amount charged, expressed as a percentage of principal, by ... 
Capital Asset Pricing Model  CAPM
A model that describes the relationship between risk and expected ... 
Future Value  FV
The value of an asset or cash at a specified date in the future ... 
Annual Equivalent Rate  AER
Interest that is calculated under the assumption that any interest ... 
Annuity
A financial product sold by financial institutions that is designed ...

Why would you take DCF into account rather than simply projecting future revenues?
Learn what discounted cash flow analysis is and why it is considered a better equity valuation tool than simply projecting ...

Markets
Digging Into The Dividend Discount Model
The DDM is one of the most foundational of financial theories, but it's only as good as its assumptions. 
Investing Basics
Calculating The Present And Future Value Of Annuities
At some point in your life, you may have had to make a series of fixed payments over a period of time  such as rent or car payments  or have received a series of payments over a period of time, ... 
Investing Basics
DCF Valuation: The Stock Market Sanity Check
Calculate whether the market is paying too much for a particular stock. 
Investing Basics
Understanding The Time Value Of Money
Find out why time really is money by learning to calculate present and future value. 
Retirement
For IRAs, Time Is Money
Don't procrastinate. The timing of your contributions can mean thousands more in savings. 
Forex Education
Time Value Of Money: Determining Your Future Worth
Determining monthly contributions to college funds, retirement plans or savings is easy with this calculation. 
Retirement
Personal Loans: To Lend Or Not To Lend?
Attempting to help a loved one with a cash loan can put a strain on your relationship  and your bank account. 
Investing Basics
Understanding Risk Averse Investing
Risk averse describes a low level of risk an investor is willing to accept on his investments. An investor who is risk averse prefers little risk and is willing to accept a lower return because ... 
Investing Basics
What is Profit?
Profit is a general term used to denote when earnings exceed the expenses incurred to generate those earnings. 
Investing Basics
What's a ClosedEnd Fund?
A closedend fund is a mutual fund that has an initial offering (IPO) of shares, and once those shares are sold, no additional shares are issued. Since it is a public offering, closedend funds ...