Business A-Level
Time Value of Money
What Time Value of Money means in Business A-Level, as defined for Eduqas.
Definition of Time Value of Money
Check what you remember
Read the wording for your board, then hide it and explain Time Value of Money in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Eduqas
The concept that a sum of money is worth more now than the same sum will be at a future date due to its potential earning capacity and the impact of inflation.
Topics that use Time Value of Money
- Component 2: Investment appraisal (Eduqas A-Level)
Related terms
- Discount Factor
- investment appraisal
- Net Present Value (NPV)
- payback period
- Accounting Rate of Return (ARR)
Using Time Value of Money in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Business questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
Start free
All Business A-Level termsA week of Premium from your first lesson · Then the free plan continues · No card, no charge