+1 (902) 468 3066 dbb@burnsidelaw.net

Time Value of Money

Source: Tax Law
Link: Time Value of Money

“Time is money”.

Money has no monetary value except when it is put in the context of time. Stated alternatively: “A dollar today is worth more than a dollar tomorrow”. The value is the effect of time on invested money. This is the most basic principle of finance.

Interest is the rental cost of borrowing money. For the borrower, interest is the rent paid for borrowing money; for the lender the income earned from lending money. They are just different sides of the same coin. The concept of the time value of money is relevant in finance, accounting, law, and taxation.

Click here to continue reading.

The post Time Value of Money appeared first on TaxChambers.

Leave a Reply

Your email address will not be published. Required fields are marked *