Time Value of Money (TVM) TVM is one of the most important theories in finance - we use it EVERYWHERE in finance.We can use TVM to value stocks, bonds, and even organizations.We can also use TVM in retirement planning, borrowing, leasing, and refinancing.

What is TVM?In other words, is a dollar worth more today or tomorrow?What rate is used to discount "future values" expected to be received in the future?