Dictionary
/
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

NYSE

The world's largest stock exchange. Wall St HQ.
Read more

ESG investing

ESG is a hot topic right now for investors. Understand what ESG investing is all about and how you can use it to diversify your portfolio.
Read more

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.
Read more

Compound interest

Understand what compound interest means and how it's calculated
Read more

Key Information Document (KID)

A document issued by an investment fund to help investors determine if it's the right fund for them.
Read more

Money weighted rate of return

Learn what Money Weighted Rate of Return or MWRR stands for in finance.
Read more

Conventional gilts

Gilts where the dividends and principal repayments are fixed in nominal terms. This is as opposed to an index-linked gilt where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI).
Read more

Interest Rate

The amount a lender charges for lending your money, or a borrower pays you for borrowing your money.
Read more

Quick ratio

Learn what quick ratio stands for in financial terms and how to calculate it.
Read more

You’re just minutes away from commission-free investing

open an isa
When you invest, your capital is at risk

Freetrade is your gateway to commission-free investing. Join over 1.6 million users using the Best online trading platform, as voted at the British Bank Awards for six years running.

Accounts
Customer Support
Resources
Company
Important information

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 (FCA reg. no. 783189). 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.

Follow us on