/

Time Value of Money

Time Value of Money

The concept that money you have now is more valuable than the same sum in the future.

The concept that money you have now is more valuable than the same sum in the future.

More terms

Maturity value

What's the maturity value of a bond?

Compound interest

Understand what compound interest means and how it's calculated

Total Return

This is the measurement of a fund’s performance in a specific period.

Depository

We look at what is a depository and what role they play in keeping markets work.

Geometric Mean Return

A way of calculating compound returns on an investment or savings over a set period of time.

Arithmetic Mean

The sum of a set of numbers added together and then divided by the total amount of numbers in that set.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Spot Rate

The currency exchange rate a bank quotes, valid with immediate effect.

Dividends

Find out what dividends are and how they can contribute to the growth of your investment portfolio.

You’re just minutes away from commission-free investing

When you invest, your capital is at risk

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2026 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.