Time value of money - Formula and numerical | Financial Management | Class 7

The time value of money is the concept that money is worth more in the present than in the future due to its potential earning capacity, or alternatively, to inflation. If you invest $100 today, that money can start earning interest or dividends.
You can use the following formula to calculate the time value of money: FV = PV x [1 + (i / n)] (n x t).

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