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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

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.
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Technical Analysis

Examining price movements of shares and other assets, and trying to predict how they will move in the future.
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Coupon

Also called a dividend, this is the fixed annual interest paid to gilt holders. It’s usually paid in two equal, semi-annual instalments and expressed as a percentage of the nominal value of the gilt.
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index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.
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Fixed Income

An investment that provides a fixed rate of return, often over a specific set of time.
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Rate of Return

Profit on an investment, expressed as a percentage of the investment.
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Time Value of Money

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

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

What's the maturity value of a bond?
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