The Time Value of Money (TVM)is defined as ________.
A) the difference in value between money today and money in the future
B) the difference in value between accounting book value and marketplace value
C) the difference in value between purchase and sales of any asset values
D) none of the above

Question

Quizplus · Accepted Answer

The Time Value of Money (TVM) refers to the concept that the value of money today is worth more than the same amount of money in the future due to its potential earning capacity. Therefore, the difference in value between money today and money in the future is what TVM refers to. Options B and C are incorrect as they do not relate to TVM. Option D is incorrect as there is a valid definition for TVM.

The Time Value of Money (TVM)is Defined as ________