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Time Value of Money (TVM) states that money received on the present date carries more value than the same amount received in the future. Understand the time value of money (TVM), including key concepts, formulas, compounding, inflation impact, and real-world business and investment examples. The time value of money (TVM) is the concept that a sum of money is worth more now than the same sum will be at a future date. Explore more in the blog. Time Value of Money (TVM) principle in finance acknowledges money 's changing worth over time . Learn about its meaning, full form, formula, its calculation how TVM impacts investments and significance in financial decision-making.