Talk:Time value of money

Effecting sentiment, people!

This is effecting sentiment and needs to be changed. —Preceding unsigned comment added by Mapsurfer (talkcontribs) 20:00, 24 September 2008 (UTC)

The first two paragraphs are appropriate for those who understand TVM, but may not be clear for those who have come to learn about it for the first time. —Preceding unsigned comment added by 98.202.147.228 (talk) 14:37, 2 June 2008 (UTC)

I understand that there are calculators (physical not online) that can calculate PVGA. It would be usefull to include a possible ling to a manufacturer of these. Mykull 21:51, 15 August 2007 (UTC)

I'm not sure TVM should focus primarily default/inflation risk - my edits are an attempt to differentiate how TVM is more than compensation for credit or currency risk. Gary 00:53, 30 September 2005 (UTC)

Regarding the opening sentence:

"The time value of money is the principle that the purchasing power of money can vary over time; money today might have a different purchasing power than money a decade later.

1. Time value of money is unrelated to purchasing power. Nothing is said in this definition about the actual meaning, which relates not to purchasing power but to nominal value.

2. "time value of money" cannot be a principle; it is a noun phrase, not a proposition. It could be called a concept, or something else that makes sense.

I could use some help in drafting a replacement. Anyone want to start it off?

Mcamp@cinci.rr.com (talk) 21:55, 24 July 2014 (UTC)

I am sure we could do better than the current replacement. The opening sentence does not seem to actually say anything. "A time value of money calculation is a calculation that solves for one of several variables in a financial problem". It does tell the reader that the "time value of money calculation" is some kind of financial calculation, but I feel like this is a tautology given the words "money" and "calculation". — Preceding unsigned comment added by Andyofmelbourne (talkcontribs) 11:37, 11 July 2015 (UTC)

I agree with the comment immediately above, and some of the previous comments too. The statement "A time value of money calculation is a calculation that solves for one of several variables in a financial problem" does not leave much impression, whether you understand TVM already or not. I will have a think, and perhaps post on this discussion page a more enlightening and eye-catching suggestion, which is at least as snappy as the current one, if I manage to come up with anything. Jonathan G. G. Lewis 08:40, 3 March 2016 (UTC) — Preceding unsigned comment added by Jonazo (talkcontribs)
Here is what I propose:
Time value of money describes the greater benefit of receiving money now rather than later. The principle of the time value of money explains why interest is paid or earned. Interest, whether it is on a bank deposit or debt, compensates the depositor or lender for the time value of money.
Time value of money problems involve the net value of cash flows at different points in time.
(etc)
I think I will just go ahead add this at the top of the article. Jonathan G. G. Lewis 09:35, 3 March 2016 (UTC) — Preceding unsigned comment added by Jonazo (talkcontribs)
It's done.
I'm not sure about the reference to Martín de Azpilcueta, which I have moved to a new History section at the top. A citation to reliable source would be handy. Jonathan G. G. Lewis 09:59, 3 March 2016 (UTC) — Preceding unsigned comment added by Jonazo (talkcontribs)

Assessment comment

The comment(s) below were originally left at Talk:Time value of money/Comments, and are posted here for posterity. Following several discussions in past years, these subpages are now deprecated. The comments may be irrelevant or outdated; if so, please feel free to remove this section.

 I was able to find a few external links for the calculators. I feel this will help improve the site.

Last edited at 20:15, 9 April 2009 (UTC). Substituted at 08:49, 30 April 2016 (UTC)