What’s the time worth of cash (TVM)?

The time worth of cash (TVM) is the idea that cash accessible immediately is price greater than the identical sum of money sooner or later. Whereas inflation regularly weakens the buying energy of cash, its price can rise over time by being invested or incomes curiosity.

The time worth of cash is a vital idea in finance and investing. Based mostly on the rate of interest and the time interval concerned, it’s used to find out the current worth of future money flows, equivalent to funding returns or mortgage repayments.

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Decide the potential future worth of a cryptocurrency funding

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