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-Chris Noonan ___
Time Value of Money
The concept that a sum of money is worth more now than the same amount in the future due to its potential earning capacity.
Present Value
The worth today of money expected to be received in the future or sequences of cash inflows, utilizing a specific return rate.
Compound Value
The future value of an investment, including the principal and the compounded interest over time.
Discount Rate
The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window. Alternatively, it can represent the rate used to discount future cash flows in present value calculations.
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