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TERM OF THE DAY

Time Value of Money - TVM The time value of money (TVM) is 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. TVM is also referred to as present discounted value. Term Of The Day Selected By Deva Panambur Managing Director Sarsi, LLC New York, NY www.sarsillc.com

Breaking it Down: Money deposited in a savings account earns a certain interest rate. Rational investors prefer to receive money today rather than...Read More