Skip to Content

time value of money

The time value of money is a function of the interest rate paid and the amount of time the money is invested. It is the ability to invest money and earn income or interest over a period of time.

On This Page

Additional Information

Therefore, the point in time when the money will be paid becomes very important. The longer the delay in making a payment, the more interest that can be earned.

Related Terms

A cash flow program is any insurance rating method that allows the insured to hold and benefit from...