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The time value of money, in a nutshell, is how much money would be worth in the future if you invested it at a certain rate. If you have $1 now and can invest for 5% (compounded annually), you would have $1.05 at the end of the year (Future Value) Can also be how much you need now to reach a certain amount in the future. If you need $1 in a year and can invest for 5% (compounded annually), you would need about 95 cents now (Present Value)

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13y ago

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