可 me value of Money The basic idea behind the concept of time value of money Is $1 received today is worth more than $1 in the future OR $1 received in the future is worth less than $1 today Why? -because interest can be earned on the money The connecting piece or link between present (today and future is the interest rateTime Value of Money The basic idea behind the concept of time value of money is: – $1 received today is worth more than $1 in the future OR – $1 received in the future is worth less than $1 today Why? – because interest can be earned on the money The connecting piece or link between present (today) and future is the interest rate