The concept of the Time Value of Money (TVM) is that money has a value today (its Prevent Value or PV) that can be invested at a given interest rate to derive a higher Future Value (FV). For value comparisons, FV can be discounted to a PV equivalent. PV can be compounded to find its FV.
Key learning objectives:
What is the Time Value of Money?
What is the equation used to calculate TVM?
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Introduction to Options, Pricing and Use Cases
Peter Eisenhardt • 13:18