Time Value of Money
Have you ever wondered what the time value of money means?
This is the idea that a dollar today is worth more than a dollar in the future. This is because a dollar received today can earn interest up until the time the future dollar
is received.
Have you ever thought about the value of money?
The value of money is the concept that a specific sum of money is more valuable the sooner you get it. The value of money is dependent on the time, and also the discounted rate used in calculating the current and future values. On the other hand, a specific sum of money if less valuable of it is payable years or decades in the future.
For example:
If you were given $100 today and invested it an annual rate of only 1%, it could be worth $101 at the end of the year, which is more than you'd have if you receive $100 at that point.
Contact the Strategic Capital team or fill out the structured settlement quote form to find the value of
your money!
"A dollar today is worth more than a dollar tomorrow."