time value of money (TVM)

Popular Terms
Price put on the time an investor or lender has to wait until the investment or loan is fully recouped. TVM is based on the concept that money received earlier is worth more than the same amount of money received later, because it can be 'employed' to earn interest over time. Computed as compound interest.

Use 'time value of money (TVM)' in a Sentence

His broker was very excited about the latest money-making opportunity, but Clifford was an impatient man and wondered if it made sense for him in terms of the time value of money attributable to him.
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Being able to wisely spend the time value of money will help your business run much more efficiently and smoothly.
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Depending on what your current finances are a stock may not be worth the time value of money if you can't afford to wait.
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