Time Value of Money
/ˈtaɪm ˈvælju ʌv ˈmʌni/
Definitions
- (n.) Principle that a sum of money has greater value now than the same sum in the future due to its potential earning capacity.
The contract's damages calculation applied the time value of money to account for delayed payment.
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Commentary
Understanding the time value of money is essential in legal contexts involving financial calculations, such as damages, settlements, and valuations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.