The time value of money refers to the fact that interest accrues on borrowed money with the passage of time.

Question

Quizplus · Accepted Answer

The time value of money is the concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This is because money can earn interest and grow in value over time. Therefore, the longer you have the money, the more it will be worth.

The Time Value of Money Refers to the Fact That