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# Time value of money (TVM) - present (PV) and future (FV)

The calculator helps you to calculate the present value of money (PV) and the future value of money (FV) in time.

## Time value of money (TVM) - present (PV) and future (FV) - calculator

 Present value of money (PV) | Future value of money (FV) Annuity due Annuity immediate Once CF - cash flow Annual interest rate Annual growth rate Number of periods years quarters months

Usefull information
The concept of a variable value over time can be explained as follows: the same sum of money received today and that received for the year do not have the same value. It is the result of action following factors:
• a decrease in purchasing power - this is a consequence of positive inflation; this means that a product priced today at 1000 MU (monetary units) after a year will most likely cost more than 1000 MU
• the possibility of investing - assuming a profitable investment, the amount of 1000 MU after investing for a certain period is worth more than 1000 MU
• occurrence of risk - risk occurs when it is possible to obtain in the future a sum of money less than the sum that a given person (investor) expects to receive
• preference for current consumption - most people prefer current consumption over future consumption, i.e. 1000 MU is now more valued than the sum of 1000 MU spent on consumption after a year