[{"data":1,"prerenderedAt":321},["ShallowReactive",2],{"term:time-value-of-money":3},{"term":4,"related":312},{"id":5,"title":6,"body":7,"category":295,"description":296,"extension":297,"faq":298,"meta":299,"navigation":300,"path":301,"related":302,"seo":305,"stem":306,"takeaways":307,"__hash__":311},"terms\u002Fterms\u002Ftime-value-of-money.md","Time Value of Money",{"type":8,"value":9,"toc":288},"minimark",[10,15,19,22,26,281,285],[11,12,14],"h2",{"id":13},"understanding-time-value-of-money","Understanding Time Value of Money",[16,17,18],"p",{},"Money available today can be invested to earn a return, so a future sum must be discounted to compare it with money now.",[16,20,21],{},"It is the basis for present value, net present value, and bond 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received in one year is worth $1,000 today at a 10% discount rate.",{"title":289,"searchDepth":290,"depth":290,"links":291},"",2,[292,293,294],{"id":13,"depth":290,"text":14},{"id":24,"depth":290,"text":25},{"id":283,"depth":290,"text":284},"personal-finance","The idea that money now is worth more than the same amount later.","md",[],{},true,"\u002Fterms\u002Ftime-value-of-money",[303,304],"compound-interest","interest-rate",{"title":6,"description":296},"terms\u002Ftime-value-of-money",[308,309,310],"A dollar today is worth more than a dollar later.","Discounting converts future money to today's value.","It underlies loans, bonds, and valuations.","uhP6A3OFKUEDBq7Ec4irO6Szl8B39Gg96QHpnhZgsVk",[313,317],{"title":314,"description":315,"path":316},"Compound Interest","Interest earned on both the original principal and on interest already earned.","\u002Fterms\u002Fcompound-interest",{"title":318,"description":319,"path":320},"Interest Rate","The cost of borrowing money, or the return for lending it, as a percentage per year.","\u002Fterms\u002Finterest-rate",1793226378856]