Time Value of Money

Time Value of Money is a basic concept in finance. It says that money today is worth more than money tomorrow. That is to say that a ringgit today has more value than a ringgit in the future. There are at least three main reasons why this is so, first, money loses its value over time; second, money has opportunity costs; third, uncertainty of future cash flows.

Islamic Financial System ©



I-FIKR Sponsors